read
TRANSCRIPT
The Japanese have always loved fresh fish But the water close to Japan has not held many fish for decades
So to feed the Japanese population fishing boats got bigger and went further than ever The further the fishermen went the longer it took to bring the fish If the return trip took more time the fish were not fresh
To solve this problem fish companies installed freezers on their boats They would catch the fish and freeze them at sea Freezers allowed the boats to go further and stay longer
However the Japanese could taste the difference between fresh and frozen fish And they did not like the taste of frozen
fish The frozen fish brought a lower price So fishing companies installed fish tanks
They would catch the fish and stuff them in the tanks fin to fin After a little thrashing around they were tired dull and lost their fresh-fish taste The fishing industry faced an impending crisis
But today they get fresh-tasting fish to Japan
How did they manage
To keep the fish tasting fresh the Japanese fishing companies still put the fish in the tanks but with a small shark The fish are challenged and hence are constantly on the move The challenge they face keeps them alive and fresh
Have you realized that some of us are also living in a pond but most of the time tired and dull
Basically in our lives sharks are new challenges to keep us active If you are steadily conquering challenges you are happy Your challenges keep you energized
Dont create success and revel in it in a state of inertia You have the resources skills and abilities to make a difference Put a shark in your tank and see how far you can really go
Weakness of attitude becomes weakness of character - Albert Einstein
While every man is different there are certain things about a woman that will make any man stand up take notice and make him decide he wants to get to know you on a deeper level
If you want to win the right mans heart you need to know what it is that makes a man go from just feeling casual about dating you to wanting and needing you on a deeper level Im going to take you inside a mans mind you so you understand what it takes to trigger this kind of connection
And Im talking about a real man - one who is mature and grounded on a physical mental emotional and spiritual level They are on a great path and open to growing on a deeply personal level Im betting thats exactly why youre on this site to find a quality kind of guy - a real man looking for a real relationship
So what does a mature REAL man want in a woman
1) A Real Man Wants A Woman Who Is Playful
Theres something that drives men wild and invites them into a deeper level of connection - play
Men love to be active and to play They were raised to express themselves and connect with those around them through action
Unfortunately too many women seem to forget this and want to talk their way into a mans heart But the fact is that men dont feel it for you because of what you say Its not your words that make a man attracted to you its the experiences you create with him
Watch or play sports together be competitive in casual games like ping pong - even add a little teasing and sarcasm here and there - and youll really ramp up the attraction and interest
2) A Real Man Wants A Woman Who Is Independent
Lots of women mistakenly believe that men are looking for a weaker woman who will make them feel like they are smarter and more powerful
Nothing could be farther from the truth
Real men want a woman who inspires them because she has great things going on her own life They want a woman who has her own purpose other than being in a relationship
A great guy isnt intimidated by independence and success What matters to a man is that a woman still has space in her life for a great relationship and is grounded and present when shes with him
The best way to communicate this to a man is to stay busy in your own life and not suddenly make him your world Dont drop your own interests responsibilities and friends just to be with him And then when you are with him really BE with him - have fun and give your attention to him and what youre doing together
3) A Real Man Wants A Woman Who Is Emotionally Mature
If a man feels attracted to a woman eventually theres going to be a situation that comes up where you and a man will see something differently and misunderstand each other
How will you respond to this and share your feelings
A woman who has the maturity to not blame or criticize a man for what shes feeling but to share her feelings in an honest and authentic way that helps a man better understand her will be attractive to a man How a woman handles her emotions is one of the most important things men look for when deciding whether or not to get serious with a woman If she lets her emotions get out of control this is a big red flag to him
On the other hand if she can present her feelings to him in a calm non-dramatic manner she will win his respect and make him feel like shes the kind of woman who will be a real partner to him Hell see that she can handle things with a cool head rather than becoming a damsel in distress he has to rescue
4) A Real Man Wants A Woman Hes Intensely Attracted To
Fact Men arent as scared of commitment and relationships as they are scared of being in a relationship with a woman where there is no passion and attraction
A common way women accidentally kill the attraction men might be feeling is by either trying too hard to get him to like you or by acting like the relationship is too serious too soon
Relax and let things happen naturally Make sure you do and say things that interject fun and humor into your relationship from the very start Theres nothing more appealing to a man than a great woman who knows how to relax and have fun
You can do this through playful teasing flirting humor and being unpredictable (in a good way) For instance instead of talking about what he does for a living when you meet him (yawn) ask him about what sports he plays and what drives him Once youre in a relationship dont be afraid to shake things up If you normally go to brunch on Sundays suggest something completely different like a bike ride and a picnic Mixing things up keeps the relationship fun for both of you and being a woman who is open to new experiences is very attractive to him
There are specific characteristics that make a man see you as a woman he wants to get to know on a deeper level To learn more about what makes a man feel intensely attracted to you subscribe to Christians free e-newsletter
Youll get an insiders view into the male mind including what he thinks about dating and what makes him want to commit to one woman
Click here to get your FREE Catch Him And Keep Him Newsletter
Christian Carter is a globally acclaimed dating relationship expert and author of the top-selling eBook Catch Him And Keep Him A Womans Guide To Finding Mr Right And Keeping Him Hooked For Good
Christian has taught thousands of women how to go inside the mind of man to become more successful with dating relationships and love Through his success-proven eBook expert newsletters and in-depth programs Christian delivers the ultimate insiders perspective as to what men really want giving women the understanding and insight they need to find date and create long-lasting relationships with their ultimate Mr Right
About Henkel
Henkel operates worldwide with leading brands and technologies in three business areas Laundry amp Home Care CosmeticsToiletries and Adhesive Technologies
Founded in 1876 Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil Schwarzkopf and Loctite
Henkel headquartered in Duumlsseldorf Germany has about 50000 employees worldwide and counts among the most internationally aligned German-based companies in the global marketplace
In India
Henkel India Ltd Henkel India Ltd established in 1987 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Chennai in India Henkel India Ltd operates in business areas of Laundry Home Care Cosmetics Toiletries and Hair Care It comprises of national and international brands such as Pril Henko Fa Margo Mr White Chek Bref Igora Royal BC Bonacure Strait Therapy Glatt amp Natural Styling and Osis
Henkel Adhesive Technologies India Private Limited is a subsidiary of Henkel AG amp Co KGaA Germany Henkel Adhesive Technologies has manufacturing facility in Jejuri Maharashtra Henkel Adhesive Technologies operates in the business areas of manufacturing Loctite anaerobic adhesives cyanoacrylate adhesives silicone sealants and polymer composites Loctite products provide solutions across whole spectrum of adhesives technologies and manufacturing processes They are used in as diverse as electronics automotive aerospace biomedical and many manufacturing industries
Henkel Teroson India Limited headquartered at Gurgaon is a Joint Venture Company of Henkel KGaA and Anand Automotive Systems and has Technical License with Sunrise MSI Corporation Japan Henkel Teroson India has manufacturing facilities at Gurgaon Chennai and Parwanoo Henkel Teroson India is TS 16949 ISO 14001 and OHSAS 18001 Certified Company by DQS of Germany The company manufactures and supplies Adhesives Sealants and NVH Products to all Automotive OEMrsquos in India
Henkel Chembond Surface Technologies Ltd established in 1996 is a joint venture between Henkel KGaA and Chembond Chemicals Ltd Headquartered in Navi Mumbai India Henkel Chembond operates in the business areas of Metal Treatment Chemicals which includes pretreatment chemicals neutral cleaners lubricants and coatings The company offers its products to the Indian automotive OEMrsquos and component suppliers steel industry general industry appliance construction equipment aviation defense and aluminum customers The renowned brands offered by Henkel Chembond in the country include Bonderitereg Multanreg P3reg Turcoreg Autophoreticreg Aquencereg and Passeritereg Henkel Chembondrsquos manufacturing facilities are located in Tarapur and Sitarganj with warehouses and offices across the country
Henkel CAC Pvt Ltd (formerly Converter Adhesives and Chemicals Pvt Ltd) established in 1985 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Mumbai in India Henkel CAC operates in business areas of manufacturing of solvent based solvent free and cold seal laminating adhesives used in flexible packaging industry Most of manufactured items comes under the brand of Liofol In addition to these Liofol products Henkel CAC sells the legacy CAC products in domestic and International markets
Henkel has three globally operating business sectors
Films
News
Laundry amp Home Care Cosmetics Toiletries Adhesive Technologies
The Companyrsquos success story started with a product from the Laundry amp Home Care business sector
Henkels cosmetic division is one of the largest of its kind in the world and its brand-name products business is continuously expanding
Henkel is the world market leader in adhesives sealants and surface treatments for consumers craftsmen and industrial applications
Hi hemant
Over the years Ive sent you information about many
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Please take a moment to read it carefully
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This tool kit is called the Integral Life Practice Starter Kit
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Food Processing Sector in India
The food processing sector is critical to Indiarsquos development It establishes vital linkages and
synergy between industry amp agriculture the two pillars of the economy India is the worldrsquos second
largest producer of food and holds the potential to become the food provider of world The growth of
this industry will bring immense benefits to the economy raising agricultural yields enhancing
productivity creating employment and raising life-standards of people across the country especially
in rural areas
This industry ranks fifth in the country and employs 16 lakh workers comprising 19 of the
countryrsquos industrial labour force It accounts for 14 of total industrial output with 55 of the GDP
Its turnover is estimated at Rs144000 crore of which Rs111200 crore is in the unorganised
sector The liberalisation of the Indian economy and world trade and rising consumer prosperity has
thrown up new opportunities for diversification in the food-processing sector and opened new vistas
for growth
Fruit and Vegetable Processingndash National Environment
India has made a good progress on the horticultural map of the world with a total annual production
of horticultural crops touching over 149 million tonnes India is the second largest producer of the
fruits (455 Million tonnes) and vegetables (908 Million tonnes) in the world contributing 1023
and 1445 of the total world production of fruits and vegetables respectively It is also the largest
producer consumer and exporter of spices
The fruit and vegetable processing industry in India is highly decentralized A large number of units
are in the cottagehome scale and small scale sector having small capacities upto 250
tonnesannum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so The prominent processed items are fruit pulps and juices fruit based ready-
to-serve beverages canned fruits and vegetables jams squashes pickles chutneys and
dehydrated vegetables More recently products like frozen pulps and vegetables frozen dried fruits
and vegetables fruit juice concentrates and vegetable curries in restorable pouches canned
mushroom and mushroom products have been taken up for manufacture by the industry The
processing level in India is estimated to be around 2 as compared to about 80 in Malaysia 30
in Thailand and 60-70 in the UK and USA
The domestic consumption of value added fruit and vegetable products is however very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material lower
capacity utilisation non-adoption of cost effective technology high cost of finance infrastructural
constraints inadequate farmers-processors linkage leading to dependence upon intermediaries The
inability for market promotion is an important reason for inadequate expansion of the domestic
market
Indiarsquos share in the world trade of horticultural processed products too is miniscule ndash less than 1 per
cent This compares very unfavourably with countries like Malaysia (83) Philippines (78) Brazil
(70) and US (70) Indiarsquos major exports are in fruit pulp pickles chutneys canned fruits and
vegetables concentrated pulps and juices dehydrated vegetables and frozen fruits and vegetables
Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new productmarket opportunities India has the potential to
achieve a 3 share in the world trade of agricultural and food products by 2015 This implies an
annual growth rate of 14 till 2010 and 15 annual growth from 2010 as tabulated below
Year World Exports Indiarsquos Exports Indiarsquos Share () Growth Rate ()
2003 522 8 15 -
2010 770 15 20 14
2015 1020 30 30 15
World Exports of 2010 amp 2015 are projected on the basis of CAGR of 6 for the 5year period (1999-
2003)
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
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- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
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fish The frozen fish brought a lower price So fishing companies installed fish tanks
They would catch the fish and stuff them in the tanks fin to fin After a little thrashing around they were tired dull and lost their fresh-fish taste The fishing industry faced an impending crisis
But today they get fresh-tasting fish to Japan
How did they manage
To keep the fish tasting fresh the Japanese fishing companies still put the fish in the tanks but with a small shark The fish are challenged and hence are constantly on the move The challenge they face keeps them alive and fresh
Have you realized that some of us are also living in a pond but most of the time tired and dull
Basically in our lives sharks are new challenges to keep us active If you are steadily conquering challenges you are happy Your challenges keep you energized
Dont create success and revel in it in a state of inertia You have the resources skills and abilities to make a difference Put a shark in your tank and see how far you can really go
Weakness of attitude becomes weakness of character - Albert Einstein
While every man is different there are certain things about a woman that will make any man stand up take notice and make him decide he wants to get to know you on a deeper level
If you want to win the right mans heart you need to know what it is that makes a man go from just feeling casual about dating you to wanting and needing you on a deeper level Im going to take you inside a mans mind you so you understand what it takes to trigger this kind of connection
And Im talking about a real man - one who is mature and grounded on a physical mental emotional and spiritual level They are on a great path and open to growing on a deeply personal level Im betting thats exactly why youre on this site to find a quality kind of guy - a real man looking for a real relationship
So what does a mature REAL man want in a woman
1) A Real Man Wants A Woman Who Is Playful
Theres something that drives men wild and invites them into a deeper level of connection - play
Men love to be active and to play They were raised to express themselves and connect with those around them through action
Unfortunately too many women seem to forget this and want to talk their way into a mans heart But the fact is that men dont feel it for you because of what you say Its not your words that make a man attracted to you its the experiences you create with him
Watch or play sports together be competitive in casual games like ping pong - even add a little teasing and sarcasm here and there - and youll really ramp up the attraction and interest
2) A Real Man Wants A Woman Who Is Independent
Lots of women mistakenly believe that men are looking for a weaker woman who will make them feel like they are smarter and more powerful
Nothing could be farther from the truth
Real men want a woman who inspires them because she has great things going on her own life They want a woman who has her own purpose other than being in a relationship
A great guy isnt intimidated by independence and success What matters to a man is that a woman still has space in her life for a great relationship and is grounded and present when shes with him
The best way to communicate this to a man is to stay busy in your own life and not suddenly make him your world Dont drop your own interests responsibilities and friends just to be with him And then when you are with him really BE with him - have fun and give your attention to him and what youre doing together
3) A Real Man Wants A Woman Who Is Emotionally Mature
If a man feels attracted to a woman eventually theres going to be a situation that comes up where you and a man will see something differently and misunderstand each other
How will you respond to this and share your feelings
A woman who has the maturity to not blame or criticize a man for what shes feeling but to share her feelings in an honest and authentic way that helps a man better understand her will be attractive to a man How a woman handles her emotions is one of the most important things men look for when deciding whether or not to get serious with a woman If she lets her emotions get out of control this is a big red flag to him
On the other hand if she can present her feelings to him in a calm non-dramatic manner she will win his respect and make him feel like shes the kind of woman who will be a real partner to him Hell see that she can handle things with a cool head rather than becoming a damsel in distress he has to rescue
4) A Real Man Wants A Woman Hes Intensely Attracted To
Fact Men arent as scared of commitment and relationships as they are scared of being in a relationship with a woman where there is no passion and attraction
A common way women accidentally kill the attraction men might be feeling is by either trying too hard to get him to like you or by acting like the relationship is too serious too soon
Relax and let things happen naturally Make sure you do and say things that interject fun and humor into your relationship from the very start Theres nothing more appealing to a man than a great woman who knows how to relax and have fun
You can do this through playful teasing flirting humor and being unpredictable (in a good way) For instance instead of talking about what he does for a living when you meet him (yawn) ask him about what sports he plays and what drives him Once youre in a relationship dont be afraid to shake things up If you normally go to brunch on Sundays suggest something completely different like a bike ride and a picnic Mixing things up keeps the relationship fun for both of you and being a woman who is open to new experiences is very attractive to him
There are specific characteristics that make a man see you as a woman he wants to get to know on a deeper level To learn more about what makes a man feel intensely attracted to you subscribe to Christians free e-newsletter
Youll get an insiders view into the male mind including what he thinks about dating and what makes him want to commit to one woman
Click here to get your FREE Catch Him And Keep Him Newsletter
Christian Carter is a globally acclaimed dating relationship expert and author of the top-selling eBook Catch Him And Keep Him A Womans Guide To Finding Mr Right And Keeping Him Hooked For Good
Christian has taught thousands of women how to go inside the mind of man to become more successful with dating relationships and love Through his success-proven eBook expert newsletters and in-depth programs Christian delivers the ultimate insiders perspective as to what men really want giving women the understanding and insight they need to find date and create long-lasting relationships with their ultimate Mr Right
About Henkel
Henkel operates worldwide with leading brands and technologies in three business areas Laundry amp Home Care CosmeticsToiletries and Adhesive Technologies
Founded in 1876 Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil Schwarzkopf and Loctite
Henkel headquartered in Duumlsseldorf Germany has about 50000 employees worldwide and counts among the most internationally aligned German-based companies in the global marketplace
In India
Henkel India Ltd Henkel India Ltd established in 1987 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Chennai in India Henkel India Ltd operates in business areas of Laundry Home Care Cosmetics Toiletries and Hair Care It comprises of national and international brands such as Pril Henko Fa Margo Mr White Chek Bref Igora Royal BC Bonacure Strait Therapy Glatt amp Natural Styling and Osis
Henkel Adhesive Technologies India Private Limited is a subsidiary of Henkel AG amp Co KGaA Germany Henkel Adhesive Technologies has manufacturing facility in Jejuri Maharashtra Henkel Adhesive Technologies operates in the business areas of manufacturing Loctite anaerobic adhesives cyanoacrylate adhesives silicone sealants and polymer composites Loctite products provide solutions across whole spectrum of adhesives technologies and manufacturing processes They are used in as diverse as electronics automotive aerospace biomedical and many manufacturing industries
Henkel Teroson India Limited headquartered at Gurgaon is a Joint Venture Company of Henkel KGaA and Anand Automotive Systems and has Technical License with Sunrise MSI Corporation Japan Henkel Teroson India has manufacturing facilities at Gurgaon Chennai and Parwanoo Henkel Teroson India is TS 16949 ISO 14001 and OHSAS 18001 Certified Company by DQS of Germany The company manufactures and supplies Adhesives Sealants and NVH Products to all Automotive OEMrsquos in India
Henkel Chembond Surface Technologies Ltd established in 1996 is a joint venture between Henkel KGaA and Chembond Chemicals Ltd Headquartered in Navi Mumbai India Henkel Chembond operates in the business areas of Metal Treatment Chemicals which includes pretreatment chemicals neutral cleaners lubricants and coatings The company offers its products to the Indian automotive OEMrsquos and component suppliers steel industry general industry appliance construction equipment aviation defense and aluminum customers The renowned brands offered by Henkel Chembond in the country include Bonderitereg Multanreg P3reg Turcoreg Autophoreticreg Aquencereg and Passeritereg Henkel Chembondrsquos manufacturing facilities are located in Tarapur and Sitarganj with warehouses and offices across the country
Henkel CAC Pvt Ltd (formerly Converter Adhesives and Chemicals Pvt Ltd) established in 1985 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Mumbai in India Henkel CAC operates in business areas of manufacturing of solvent based solvent free and cold seal laminating adhesives used in flexible packaging industry Most of manufactured items comes under the brand of Liofol In addition to these Liofol products Henkel CAC sells the legacy CAC products in domestic and International markets
Henkel has three globally operating business sectors
Films
News
Laundry amp Home Care Cosmetics Toiletries Adhesive Technologies
The Companyrsquos success story started with a product from the Laundry amp Home Care business sector
Henkels cosmetic division is one of the largest of its kind in the world and its brand-name products business is continuously expanding
Henkel is the world market leader in adhesives sealants and surface treatments for consumers craftsmen and industrial applications
Hi hemant
Over the years Ive sent you information about many
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This email however is particularly important
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Food Processing Sector in India
The food processing sector is critical to Indiarsquos development It establishes vital linkages and
synergy between industry amp agriculture the two pillars of the economy India is the worldrsquos second
largest producer of food and holds the potential to become the food provider of world The growth of
this industry will bring immense benefits to the economy raising agricultural yields enhancing
productivity creating employment and raising life-standards of people across the country especially
in rural areas
This industry ranks fifth in the country and employs 16 lakh workers comprising 19 of the
countryrsquos industrial labour force It accounts for 14 of total industrial output with 55 of the GDP
Its turnover is estimated at Rs144000 crore of which Rs111200 crore is in the unorganised
sector The liberalisation of the Indian economy and world trade and rising consumer prosperity has
thrown up new opportunities for diversification in the food-processing sector and opened new vistas
for growth
Fruit and Vegetable Processingndash National Environment
India has made a good progress on the horticultural map of the world with a total annual production
of horticultural crops touching over 149 million tonnes India is the second largest producer of the
fruits (455 Million tonnes) and vegetables (908 Million tonnes) in the world contributing 1023
and 1445 of the total world production of fruits and vegetables respectively It is also the largest
producer consumer and exporter of spices
The fruit and vegetable processing industry in India is highly decentralized A large number of units
are in the cottagehome scale and small scale sector having small capacities upto 250
tonnesannum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so The prominent processed items are fruit pulps and juices fruit based ready-
to-serve beverages canned fruits and vegetables jams squashes pickles chutneys and
dehydrated vegetables More recently products like frozen pulps and vegetables frozen dried fruits
and vegetables fruit juice concentrates and vegetable curries in restorable pouches canned
mushroom and mushroom products have been taken up for manufacture by the industry The
processing level in India is estimated to be around 2 as compared to about 80 in Malaysia 30
in Thailand and 60-70 in the UK and USA
The domestic consumption of value added fruit and vegetable products is however very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material lower
capacity utilisation non-adoption of cost effective technology high cost of finance infrastructural
constraints inadequate farmers-processors linkage leading to dependence upon intermediaries The
inability for market promotion is an important reason for inadequate expansion of the domestic
market
Indiarsquos share in the world trade of horticultural processed products too is miniscule ndash less than 1 per
cent This compares very unfavourably with countries like Malaysia (83) Philippines (78) Brazil
(70) and US (70) Indiarsquos major exports are in fruit pulp pickles chutneys canned fruits and
vegetables concentrated pulps and juices dehydrated vegetables and frozen fruits and vegetables
Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new productmarket opportunities India has the potential to
achieve a 3 share in the world trade of agricultural and food products by 2015 This implies an
annual growth rate of 14 till 2010 and 15 annual growth from 2010 as tabulated below
Year World Exports Indiarsquos Exports Indiarsquos Share () Growth Rate ()
2003 522 8 15 -
2010 770 15 20 14
2015 1020 30 30 15
World Exports of 2010 amp 2015 are projected on the basis of CAGR of 6 for the 5year period (1999-
2003)
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
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Lots of women mistakenly believe that men are looking for a weaker woman who will make them feel like they are smarter and more powerful
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The best way to communicate this to a man is to stay busy in your own life and not suddenly make him your world Dont drop your own interests responsibilities and friends just to be with him And then when you are with him really BE with him - have fun and give your attention to him and what youre doing together
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If a man feels attracted to a woman eventually theres going to be a situation that comes up where you and a man will see something differently and misunderstand each other
How will you respond to this and share your feelings
A woman who has the maturity to not blame or criticize a man for what shes feeling but to share her feelings in an honest and authentic way that helps a man better understand her will be attractive to a man How a woman handles her emotions is one of the most important things men look for when deciding whether or not to get serious with a woman If she lets her emotions get out of control this is a big red flag to him
On the other hand if she can present her feelings to him in a calm non-dramatic manner she will win his respect and make him feel like shes the kind of woman who will be a real partner to him Hell see that she can handle things with a cool head rather than becoming a damsel in distress he has to rescue
4) A Real Man Wants A Woman Hes Intensely Attracted To
Fact Men arent as scared of commitment and relationships as they are scared of being in a relationship with a woman where there is no passion and attraction
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Relax and let things happen naturally Make sure you do and say things that interject fun and humor into your relationship from the very start Theres nothing more appealing to a man than a great woman who knows how to relax and have fun
You can do this through playful teasing flirting humor and being unpredictable (in a good way) For instance instead of talking about what he does for a living when you meet him (yawn) ask him about what sports he plays and what drives him Once youre in a relationship dont be afraid to shake things up If you normally go to brunch on Sundays suggest something completely different like a bike ride and a picnic Mixing things up keeps the relationship fun for both of you and being a woman who is open to new experiences is very attractive to him
There are specific characteristics that make a man see you as a woman he wants to get to know on a deeper level To learn more about what makes a man feel intensely attracted to you subscribe to Christians free e-newsletter
Youll get an insiders view into the male mind including what he thinks about dating and what makes him want to commit to one woman
Click here to get your FREE Catch Him And Keep Him Newsletter
Christian Carter is a globally acclaimed dating relationship expert and author of the top-selling eBook Catch Him And Keep Him A Womans Guide To Finding Mr Right And Keeping Him Hooked For Good
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About Henkel
Henkel operates worldwide with leading brands and technologies in three business areas Laundry amp Home Care CosmeticsToiletries and Adhesive Technologies
Founded in 1876 Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil Schwarzkopf and Loctite
Henkel headquartered in Duumlsseldorf Germany has about 50000 employees worldwide and counts among the most internationally aligned German-based companies in the global marketplace
In India
Henkel India Ltd Henkel India Ltd established in 1987 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Chennai in India Henkel India Ltd operates in business areas of Laundry Home Care Cosmetics Toiletries and Hair Care It comprises of national and international brands such as Pril Henko Fa Margo Mr White Chek Bref Igora Royal BC Bonacure Strait Therapy Glatt amp Natural Styling and Osis
Henkel Adhesive Technologies India Private Limited is a subsidiary of Henkel AG amp Co KGaA Germany Henkel Adhesive Technologies has manufacturing facility in Jejuri Maharashtra Henkel Adhesive Technologies operates in the business areas of manufacturing Loctite anaerobic adhesives cyanoacrylate adhesives silicone sealants and polymer composites Loctite products provide solutions across whole spectrum of adhesives technologies and manufacturing processes They are used in as diverse as electronics automotive aerospace biomedical and many manufacturing industries
Henkel Teroson India Limited headquartered at Gurgaon is a Joint Venture Company of Henkel KGaA and Anand Automotive Systems and has Technical License with Sunrise MSI Corporation Japan Henkel Teroson India has manufacturing facilities at Gurgaon Chennai and Parwanoo Henkel Teroson India is TS 16949 ISO 14001 and OHSAS 18001 Certified Company by DQS of Germany The company manufactures and supplies Adhesives Sealants and NVH Products to all Automotive OEMrsquos in India
Henkel Chembond Surface Technologies Ltd established in 1996 is a joint venture between Henkel KGaA and Chembond Chemicals Ltd Headquartered in Navi Mumbai India Henkel Chembond operates in the business areas of Metal Treatment Chemicals which includes pretreatment chemicals neutral cleaners lubricants and coatings The company offers its products to the Indian automotive OEMrsquos and component suppliers steel industry general industry appliance construction equipment aviation defense and aluminum customers The renowned brands offered by Henkel Chembond in the country include Bonderitereg Multanreg P3reg Turcoreg Autophoreticreg Aquencereg and Passeritereg Henkel Chembondrsquos manufacturing facilities are located in Tarapur and Sitarganj with warehouses and offices across the country
Henkel CAC Pvt Ltd (formerly Converter Adhesives and Chemicals Pvt Ltd) established in 1985 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Mumbai in India Henkel CAC operates in business areas of manufacturing of solvent based solvent free and cold seal laminating adhesives used in flexible packaging industry Most of manufactured items comes under the brand of Liofol In addition to these Liofol products Henkel CAC sells the legacy CAC products in domestic and International markets
Henkel has three globally operating business sectors
Films
News
Laundry amp Home Care Cosmetics Toiletries Adhesive Technologies
The Companyrsquos success story started with a product from the Laundry amp Home Care business sector
Henkels cosmetic division is one of the largest of its kind in the world and its brand-name products business is continuously expanding
Henkel is the world market leader in adhesives sealants and surface treatments for consumers craftsmen and industrial applications
Hi hemant
Over the years Ive sent you information about many
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Food Processing Sector in India
The food processing sector is critical to Indiarsquos development It establishes vital linkages and
synergy between industry amp agriculture the two pillars of the economy India is the worldrsquos second
largest producer of food and holds the potential to become the food provider of world The growth of
this industry will bring immense benefits to the economy raising agricultural yields enhancing
productivity creating employment and raising life-standards of people across the country especially
in rural areas
This industry ranks fifth in the country and employs 16 lakh workers comprising 19 of the
countryrsquos industrial labour force It accounts for 14 of total industrial output with 55 of the GDP
Its turnover is estimated at Rs144000 crore of which Rs111200 crore is in the unorganised
sector The liberalisation of the Indian economy and world trade and rising consumer prosperity has
thrown up new opportunities for diversification in the food-processing sector and opened new vistas
for growth
Fruit and Vegetable Processingndash National Environment
India has made a good progress on the horticultural map of the world with a total annual production
of horticultural crops touching over 149 million tonnes India is the second largest producer of the
fruits (455 Million tonnes) and vegetables (908 Million tonnes) in the world contributing 1023
and 1445 of the total world production of fruits and vegetables respectively It is also the largest
producer consumer and exporter of spices
The fruit and vegetable processing industry in India is highly decentralized A large number of units
are in the cottagehome scale and small scale sector having small capacities upto 250
tonnesannum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so The prominent processed items are fruit pulps and juices fruit based ready-
to-serve beverages canned fruits and vegetables jams squashes pickles chutneys and
dehydrated vegetables More recently products like frozen pulps and vegetables frozen dried fruits
and vegetables fruit juice concentrates and vegetable curries in restorable pouches canned
mushroom and mushroom products have been taken up for manufacture by the industry The
processing level in India is estimated to be around 2 as compared to about 80 in Malaysia 30
in Thailand and 60-70 in the UK and USA
The domestic consumption of value added fruit and vegetable products is however very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material lower
capacity utilisation non-adoption of cost effective technology high cost of finance infrastructural
constraints inadequate farmers-processors linkage leading to dependence upon intermediaries The
inability for market promotion is an important reason for inadequate expansion of the domestic
market
Indiarsquos share in the world trade of horticultural processed products too is miniscule ndash less than 1 per
cent This compares very unfavourably with countries like Malaysia (83) Philippines (78) Brazil
(70) and US (70) Indiarsquos major exports are in fruit pulp pickles chutneys canned fruits and
vegetables concentrated pulps and juices dehydrated vegetables and frozen fruits and vegetables
Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new productmarket opportunities India has the potential to
achieve a 3 share in the world trade of agricultural and food products by 2015 This implies an
annual growth rate of 14 till 2010 and 15 annual growth from 2010 as tabulated below
Year World Exports Indiarsquos Exports Indiarsquos Share () Growth Rate ()
2003 522 8 15 -
2010 770 15 20 14
2015 1020 30 30 15
World Exports of 2010 amp 2015 are projected on the basis of CAGR of 6 for the 5year period (1999-
2003)
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
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While every man is different there are certain things about a woman that will make any man stand up take notice and make him decide he wants to get to know you on a deeper level
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Watch or play sports together be competitive in casual games like ping pong - even add a little teasing and sarcasm here and there - and youll really ramp up the attraction and interest
2) A Real Man Wants A Woman Who Is Independent
Lots of women mistakenly believe that men are looking for a weaker woman who will make them feel like they are smarter and more powerful
Nothing could be farther from the truth
Real men want a woman who inspires them because she has great things going on her own life They want a woman who has her own purpose other than being in a relationship
A great guy isnt intimidated by independence and success What matters to a man is that a woman still has space in her life for a great relationship and is grounded and present when shes with him
The best way to communicate this to a man is to stay busy in your own life and not suddenly make him your world Dont drop your own interests responsibilities and friends just to be with him And then when you are with him really BE with him - have fun and give your attention to him and what youre doing together
3) A Real Man Wants A Woman Who Is Emotionally Mature
If a man feels attracted to a woman eventually theres going to be a situation that comes up where you and a man will see something differently and misunderstand each other
How will you respond to this and share your feelings
A woman who has the maturity to not blame or criticize a man for what shes feeling but to share her feelings in an honest and authentic way that helps a man better understand her will be attractive to a man How a woman handles her emotions is one of the most important things men look for when deciding whether or not to get serious with a woman If she lets her emotions get out of control this is a big red flag to him
On the other hand if she can present her feelings to him in a calm non-dramatic manner she will win his respect and make him feel like shes the kind of woman who will be a real partner to him Hell see that she can handle things with a cool head rather than becoming a damsel in distress he has to rescue
4) A Real Man Wants A Woman Hes Intensely Attracted To
Fact Men arent as scared of commitment and relationships as they are scared of being in a relationship with a woman where there is no passion and attraction
A common way women accidentally kill the attraction men might be feeling is by either trying too hard to get him to like you or by acting like the relationship is too serious too soon
Relax and let things happen naturally Make sure you do and say things that interject fun and humor into your relationship from the very start Theres nothing more appealing to a man than a great woman who knows how to relax and have fun
You can do this through playful teasing flirting humor and being unpredictable (in a good way) For instance instead of talking about what he does for a living when you meet him (yawn) ask him about what sports he plays and what drives him Once youre in a relationship dont be afraid to shake things up If you normally go to brunch on Sundays suggest something completely different like a bike ride and a picnic Mixing things up keeps the relationship fun for both of you and being a woman who is open to new experiences is very attractive to him
There are specific characteristics that make a man see you as a woman he wants to get to know on a deeper level To learn more about what makes a man feel intensely attracted to you subscribe to Christians free e-newsletter
Youll get an insiders view into the male mind including what he thinks about dating and what makes him want to commit to one woman
Click here to get your FREE Catch Him And Keep Him Newsletter
Christian Carter is a globally acclaimed dating relationship expert and author of the top-selling eBook Catch Him And Keep Him A Womans Guide To Finding Mr Right And Keeping Him Hooked For Good
Christian has taught thousands of women how to go inside the mind of man to become more successful with dating relationships and love Through his success-proven eBook expert newsletters and in-depth programs Christian delivers the ultimate insiders perspective as to what men really want giving women the understanding and insight they need to find date and create long-lasting relationships with their ultimate Mr Right
About Henkel
Henkel operates worldwide with leading brands and technologies in three business areas Laundry amp Home Care CosmeticsToiletries and Adhesive Technologies
Founded in 1876 Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil Schwarzkopf and Loctite
Henkel headquartered in Duumlsseldorf Germany has about 50000 employees worldwide and counts among the most internationally aligned German-based companies in the global marketplace
In India
Henkel India Ltd Henkel India Ltd established in 1987 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Chennai in India Henkel India Ltd operates in business areas of Laundry Home Care Cosmetics Toiletries and Hair Care It comprises of national and international brands such as Pril Henko Fa Margo Mr White Chek Bref Igora Royal BC Bonacure Strait Therapy Glatt amp Natural Styling and Osis
Henkel Adhesive Technologies India Private Limited is a subsidiary of Henkel AG amp Co KGaA Germany Henkel Adhesive Technologies has manufacturing facility in Jejuri Maharashtra Henkel Adhesive Technologies operates in the business areas of manufacturing Loctite anaerobic adhesives cyanoacrylate adhesives silicone sealants and polymer composites Loctite products provide solutions across whole spectrum of adhesives technologies and manufacturing processes They are used in as diverse as electronics automotive aerospace biomedical and many manufacturing industries
Henkel Teroson India Limited headquartered at Gurgaon is a Joint Venture Company of Henkel KGaA and Anand Automotive Systems and has Technical License with Sunrise MSI Corporation Japan Henkel Teroson India has manufacturing facilities at Gurgaon Chennai and Parwanoo Henkel Teroson India is TS 16949 ISO 14001 and OHSAS 18001 Certified Company by DQS of Germany The company manufactures and supplies Adhesives Sealants and NVH Products to all Automotive OEMrsquos in India
Henkel Chembond Surface Technologies Ltd established in 1996 is a joint venture between Henkel KGaA and Chembond Chemicals Ltd Headquartered in Navi Mumbai India Henkel Chembond operates in the business areas of Metal Treatment Chemicals which includes pretreatment chemicals neutral cleaners lubricants and coatings The company offers its products to the Indian automotive OEMrsquos and component suppliers steel industry general industry appliance construction equipment aviation defense and aluminum customers The renowned brands offered by Henkel Chembond in the country include Bonderitereg Multanreg P3reg Turcoreg Autophoreticreg Aquencereg and Passeritereg Henkel Chembondrsquos manufacturing facilities are located in Tarapur and Sitarganj with warehouses and offices across the country
Henkel CAC Pvt Ltd (formerly Converter Adhesives and Chemicals Pvt Ltd) established in 1985 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Mumbai in India Henkel CAC operates in business areas of manufacturing of solvent based solvent free and cold seal laminating adhesives used in flexible packaging industry Most of manufactured items comes under the brand of Liofol In addition to these Liofol products Henkel CAC sells the legacy CAC products in domestic and International markets
Henkel has three globally operating business sectors
Films
News
Laundry amp Home Care Cosmetics Toiletries Adhesive Technologies
The Companyrsquos success story started with a product from the Laundry amp Home Care business sector
Henkels cosmetic division is one of the largest of its kind in the world and its brand-name products business is continuously expanding
Henkel is the world market leader in adhesives sealants and surface treatments for consumers craftsmen and industrial applications
Hi hemant
Over the years Ive sent you information about many
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Food Processing Sector in India
The food processing sector is critical to Indiarsquos development It establishes vital linkages and
synergy between industry amp agriculture the two pillars of the economy India is the worldrsquos second
largest producer of food and holds the potential to become the food provider of world The growth of
this industry will bring immense benefits to the economy raising agricultural yields enhancing
productivity creating employment and raising life-standards of people across the country especially
in rural areas
This industry ranks fifth in the country and employs 16 lakh workers comprising 19 of the
countryrsquos industrial labour force It accounts for 14 of total industrial output with 55 of the GDP
Its turnover is estimated at Rs144000 crore of which Rs111200 crore is in the unorganised
sector The liberalisation of the Indian economy and world trade and rising consumer prosperity has
thrown up new opportunities for diversification in the food-processing sector and opened new vistas
for growth
Fruit and Vegetable Processingndash National Environment
India has made a good progress on the horticultural map of the world with a total annual production
of horticultural crops touching over 149 million tonnes India is the second largest producer of the
fruits (455 Million tonnes) and vegetables (908 Million tonnes) in the world contributing 1023
and 1445 of the total world production of fruits and vegetables respectively It is also the largest
producer consumer and exporter of spices
The fruit and vegetable processing industry in India is highly decentralized A large number of units
are in the cottagehome scale and small scale sector having small capacities upto 250
tonnesannum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so The prominent processed items are fruit pulps and juices fruit based ready-
to-serve beverages canned fruits and vegetables jams squashes pickles chutneys and
dehydrated vegetables More recently products like frozen pulps and vegetables frozen dried fruits
and vegetables fruit juice concentrates and vegetable curries in restorable pouches canned
mushroom and mushroom products have been taken up for manufacture by the industry The
processing level in India is estimated to be around 2 as compared to about 80 in Malaysia 30
in Thailand and 60-70 in the UK and USA
The domestic consumption of value added fruit and vegetable products is however very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material lower
capacity utilisation non-adoption of cost effective technology high cost of finance infrastructural
constraints inadequate farmers-processors linkage leading to dependence upon intermediaries The
inability for market promotion is an important reason for inadequate expansion of the domestic
market
Indiarsquos share in the world trade of horticultural processed products too is miniscule ndash less than 1 per
cent This compares very unfavourably with countries like Malaysia (83) Philippines (78) Brazil
(70) and US (70) Indiarsquos major exports are in fruit pulp pickles chutneys canned fruits and
vegetables concentrated pulps and juices dehydrated vegetables and frozen fruits and vegetables
Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new productmarket opportunities India has the potential to
achieve a 3 share in the world trade of agricultural and food products by 2015 This implies an
annual growth rate of 14 till 2010 and 15 annual growth from 2010 as tabulated below
Year World Exports Indiarsquos Exports Indiarsquos Share () Growth Rate ()
2003 522 8 15 -
2010 770 15 20 14
2015 1020 30 30 15
World Exports of 2010 amp 2015 are projected on the basis of CAGR of 6 for the 5year period (1999-
2003)
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
The best way to communicate this to a man is to stay busy in your own life and not suddenly make him your world Dont drop your own interests responsibilities and friends just to be with him And then when you are with him really BE with him - have fun and give your attention to him and what youre doing together
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If a man feels attracted to a woman eventually theres going to be a situation that comes up where you and a man will see something differently and misunderstand each other
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Fact Men arent as scared of commitment and relationships as they are scared of being in a relationship with a woman where there is no passion and attraction
A common way women accidentally kill the attraction men might be feeling is by either trying too hard to get him to like you or by acting like the relationship is too serious too soon
Relax and let things happen naturally Make sure you do and say things that interject fun and humor into your relationship from the very start Theres nothing more appealing to a man than a great woman who knows how to relax and have fun
You can do this through playful teasing flirting humor and being unpredictable (in a good way) For instance instead of talking about what he does for a living when you meet him (yawn) ask him about what sports he plays and what drives him Once youre in a relationship dont be afraid to shake things up If you normally go to brunch on Sundays suggest something completely different like a bike ride and a picnic Mixing things up keeps the relationship fun for both of you and being a woman who is open to new experiences is very attractive to him
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About Henkel
Henkel operates worldwide with leading brands and technologies in three business areas Laundry amp Home Care CosmeticsToiletries and Adhesive Technologies
Founded in 1876 Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil Schwarzkopf and Loctite
Henkel headquartered in Duumlsseldorf Germany has about 50000 employees worldwide and counts among the most internationally aligned German-based companies in the global marketplace
In India
Henkel India Ltd Henkel India Ltd established in 1987 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Chennai in India Henkel India Ltd operates in business areas of Laundry Home Care Cosmetics Toiletries and Hair Care It comprises of national and international brands such as Pril Henko Fa Margo Mr White Chek Bref Igora Royal BC Bonacure Strait Therapy Glatt amp Natural Styling and Osis
Henkel Adhesive Technologies India Private Limited is a subsidiary of Henkel AG amp Co KGaA Germany Henkel Adhesive Technologies has manufacturing facility in Jejuri Maharashtra Henkel Adhesive Technologies operates in the business areas of manufacturing Loctite anaerobic adhesives cyanoacrylate adhesives silicone sealants and polymer composites Loctite products provide solutions across whole spectrum of adhesives technologies and manufacturing processes They are used in as diverse as electronics automotive aerospace biomedical and many manufacturing industries
Henkel Teroson India Limited headquartered at Gurgaon is a Joint Venture Company of Henkel KGaA and Anand Automotive Systems and has Technical License with Sunrise MSI Corporation Japan Henkel Teroson India has manufacturing facilities at Gurgaon Chennai and Parwanoo Henkel Teroson India is TS 16949 ISO 14001 and OHSAS 18001 Certified Company by DQS of Germany The company manufactures and supplies Adhesives Sealants and NVH Products to all Automotive OEMrsquos in India
Henkel Chembond Surface Technologies Ltd established in 1996 is a joint venture between Henkel KGaA and Chembond Chemicals Ltd Headquartered in Navi Mumbai India Henkel Chembond operates in the business areas of Metal Treatment Chemicals which includes pretreatment chemicals neutral cleaners lubricants and coatings The company offers its products to the Indian automotive OEMrsquos and component suppliers steel industry general industry appliance construction equipment aviation defense and aluminum customers The renowned brands offered by Henkel Chembond in the country include Bonderitereg Multanreg P3reg Turcoreg Autophoreticreg Aquencereg and Passeritereg Henkel Chembondrsquos manufacturing facilities are located in Tarapur and Sitarganj with warehouses and offices across the country
Henkel CAC Pvt Ltd (formerly Converter Adhesives and Chemicals Pvt Ltd) established in 1985 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Mumbai in India Henkel CAC operates in business areas of manufacturing of solvent based solvent free and cold seal laminating adhesives used in flexible packaging industry Most of manufactured items comes under the brand of Liofol In addition to these Liofol products Henkel CAC sells the legacy CAC products in domestic and International markets
Henkel has three globally operating business sectors
Films
News
Laundry amp Home Care Cosmetics Toiletries Adhesive Technologies
The Companyrsquos success story started with a product from the Laundry amp Home Care business sector
Henkels cosmetic division is one of the largest of its kind in the world and its brand-name products business is continuously expanding
Henkel is the world market leader in adhesives sealants and surface treatments for consumers craftsmen and industrial applications
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Food Processing Sector in India
The food processing sector is critical to Indiarsquos development It establishes vital linkages and
synergy between industry amp agriculture the two pillars of the economy India is the worldrsquos second
largest producer of food and holds the potential to become the food provider of world The growth of
this industry will bring immense benefits to the economy raising agricultural yields enhancing
productivity creating employment and raising life-standards of people across the country especially
in rural areas
This industry ranks fifth in the country and employs 16 lakh workers comprising 19 of the
countryrsquos industrial labour force It accounts for 14 of total industrial output with 55 of the GDP
Its turnover is estimated at Rs144000 crore of which Rs111200 crore is in the unorganised
sector The liberalisation of the Indian economy and world trade and rising consumer prosperity has
thrown up new opportunities for diversification in the food-processing sector and opened new vistas
for growth
Fruit and Vegetable Processingndash National Environment
India has made a good progress on the horticultural map of the world with a total annual production
of horticultural crops touching over 149 million tonnes India is the second largest producer of the
fruits (455 Million tonnes) and vegetables (908 Million tonnes) in the world contributing 1023
and 1445 of the total world production of fruits and vegetables respectively It is also the largest
producer consumer and exporter of spices
The fruit and vegetable processing industry in India is highly decentralized A large number of units
are in the cottagehome scale and small scale sector having small capacities upto 250
tonnesannum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so The prominent processed items are fruit pulps and juices fruit based ready-
to-serve beverages canned fruits and vegetables jams squashes pickles chutneys and
dehydrated vegetables More recently products like frozen pulps and vegetables frozen dried fruits
and vegetables fruit juice concentrates and vegetable curries in restorable pouches canned
mushroom and mushroom products have been taken up for manufacture by the industry The
processing level in India is estimated to be around 2 as compared to about 80 in Malaysia 30
in Thailand and 60-70 in the UK and USA
The domestic consumption of value added fruit and vegetable products is however very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material lower
capacity utilisation non-adoption of cost effective technology high cost of finance infrastructural
constraints inadequate farmers-processors linkage leading to dependence upon intermediaries The
inability for market promotion is an important reason for inadequate expansion of the domestic
market
Indiarsquos share in the world trade of horticultural processed products too is miniscule ndash less than 1 per
cent This compares very unfavourably with countries like Malaysia (83) Philippines (78) Brazil
(70) and US (70) Indiarsquos major exports are in fruit pulp pickles chutneys canned fruits and
vegetables concentrated pulps and juices dehydrated vegetables and frozen fruits and vegetables
Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new productmarket opportunities India has the potential to
achieve a 3 share in the world trade of agricultural and food products by 2015 This implies an
annual growth rate of 14 till 2010 and 15 annual growth from 2010 as tabulated below
Year World Exports Indiarsquos Exports Indiarsquos Share () Growth Rate ()
2003 522 8 15 -
2010 770 15 20 14
2015 1020 30 30 15
World Exports of 2010 amp 2015 are projected on the basis of CAGR of 6 for the 5year period (1999-
2003)
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
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About Henkel
Henkel operates worldwide with leading brands and technologies in three business areas Laundry amp Home Care CosmeticsToiletries and Adhesive Technologies
Founded in 1876 Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil Schwarzkopf and Loctite
Henkel headquartered in Duumlsseldorf Germany has about 50000 employees worldwide and counts among the most internationally aligned German-based companies in the global marketplace
In India
Henkel India Ltd Henkel India Ltd established in 1987 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Chennai in India Henkel India Ltd operates in business areas of Laundry Home Care Cosmetics Toiletries and Hair Care It comprises of national and international brands such as Pril Henko Fa Margo Mr White Chek Bref Igora Royal BC Bonacure Strait Therapy Glatt amp Natural Styling and Osis
Henkel Adhesive Technologies India Private Limited is a subsidiary of Henkel AG amp Co KGaA Germany Henkel Adhesive Technologies has manufacturing facility in Jejuri Maharashtra Henkel Adhesive Technologies operates in the business areas of manufacturing Loctite anaerobic adhesives cyanoacrylate adhesives silicone sealants and polymer composites Loctite products provide solutions across whole spectrum of adhesives technologies and manufacturing processes They are used in as diverse as electronics automotive aerospace biomedical and many manufacturing industries
Henkel Teroson India Limited headquartered at Gurgaon is a Joint Venture Company of Henkel KGaA and Anand Automotive Systems and has Technical License with Sunrise MSI Corporation Japan Henkel Teroson India has manufacturing facilities at Gurgaon Chennai and Parwanoo Henkel Teroson India is TS 16949 ISO 14001 and OHSAS 18001 Certified Company by DQS of Germany The company manufactures and supplies Adhesives Sealants and NVH Products to all Automotive OEMrsquos in India
Henkel Chembond Surface Technologies Ltd established in 1996 is a joint venture between Henkel KGaA and Chembond Chemicals Ltd Headquartered in Navi Mumbai India Henkel Chembond operates in the business areas of Metal Treatment Chemicals which includes pretreatment chemicals neutral cleaners lubricants and coatings The company offers its products to the Indian automotive OEMrsquos and component suppliers steel industry general industry appliance construction equipment aviation defense and aluminum customers The renowned brands offered by Henkel Chembond in the country include Bonderitereg Multanreg P3reg Turcoreg Autophoreticreg Aquencereg and Passeritereg Henkel Chembondrsquos manufacturing facilities are located in Tarapur and Sitarganj with warehouses and offices across the country
Henkel CAC Pvt Ltd (formerly Converter Adhesives and Chemicals Pvt Ltd) established in 1985 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Mumbai in India Henkel CAC operates in business areas of manufacturing of solvent based solvent free and cold seal laminating adhesives used in flexible packaging industry Most of manufactured items comes under the brand of Liofol In addition to these Liofol products Henkel CAC sells the legacy CAC products in domestic and International markets
Henkel has three globally operating business sectors
Films
News
Laundry amp Home Care Cosmetics Toiletries Adhesive Technologies
The Companyrsquos success story started with a product from the Laundry amp Home Care business sector
Henkels cosmetic division is one of the largest of its kind in the world and its brand-name products business is continuously expanding
Henkel is the world market leader in adhesives sealants and surface treatments for consumers craftsmen and industrial applications
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Food Processing Sector in India
The food processing sector is critical to Indiarsquos development It establishes vital linkages and
synergy between industry amp agriculture the two pillars of the economy India is the worldrsquos second
largest producer of food and holds the potential to become the food provider of world The growth of
this industry will bring immense benefits to the economy raising agricultural yields enhancing
productivity creating employment and raising life-standards of people across the country especially
in rural areas
This industry ranks fifth in the country and employs 16 lakh workers comprising 19 of the
countryrsquos industrial labour force It accounts for 14 of total industrial output with 55 of the GDP
Its turnover is estimated at Rs144000 crore of which Rs111200 crore is in the unorganised
sector The liberalisation of the Indian economy and world trade and rising consumer prosperity has
thrown up new opportunities for diversification in the food-processing sector and opened new vistas
for growth
Fruit and Vegetable Processingndash National Environment
India has made a good progress on the horticultural map of the world with a total annual production
of horticultural crops touching over 149 million tonnes India is the second largest producer of the
fruits (455 Million tonnes) and vegetables (908 Million tonnes) in the world contributing 1023
and 1445 of the total world production of fruits and vegetables respectively It is also the largest
producer consumer and exporter of spices
The fruit and vegetable processing industry in India is highly decentralized A large number of units
are in the cottagehome scale and small scale sector having small capacities upto 250
tonnesannum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so The prominent processed items are fruit pulps and juices fruit based ready-
to-serve beverages canned fruits and vegetables jams squashes pickles chutneys and
dehydrated vegetables More recently products like frozen pulps and vegetables frozen dried fruits
and vegetables fruit juice concentrates and vegetable curries in restorable pouches canned
mushroom and mushroom products have been taken up for manufacture by the industry The
processing level in India is estimated to be around 2 as compared to about 80 in Malaysia 30
in Thailand and 60-70 in the UK and USA
The domestic consumption of value added fruit and vegetable products is however very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material lower
capacity utilisation non-adoption of cost effective technology high cost of finance infrastructural
constraints inadequate farmers-processors linkage leading to dependence upon intermediaries The
inability for market promotion is an important reason for inadequate expansion of the domestic
market
Indiarsquos share in the world trade of horticultural processed products too is miniscule ndash less than 1 per
cent This compares very unfavourably with countries like Malaysia (83) Philippines (78) Brazil
(70) and US (70) Indiarsquos major exports are in fruit pulp pickles chutneys canned fruits and
vegetables concentrated pulps and juices dehydrated vegetables and frozen fruits and vegetables
Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new productmarket opportunities India has the potential to
achieve a 3 share in the world trade of agricultural and food products by 2015 This implies an
annual growth rate of 14 till 2010 and 15 annual growth from 2010 as tabulated below
Year World Exports Indiarsquos Exports Indiarsquos Share () Growth Rate ()
2003 522 8 15 -
2010 770 15 20 14
2015 1020 30 30 15
World Exports of 2010 amp 2015 are projected on the basis of CAGR of 6 for the 5year period (1999-
2003)
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
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- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
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Henkel Chembond Surface Technologies Ltd established in 1996 is a joint venture between Henkel KGaA and Chembond Chemicals Ltd Headquartered in Navi Mumbai India Henkel Chembond operates in the business areas of Metal Treatment Chemicals which includes pretreatment chemicals neutral cleaners lubricants and coatings The company offers its products to the Indian automotive OEMrsquos and component suppliers steel industry general industry appliance construction equipment aviation defense and aluminum customers The renowned brands offered by Henkel Chembond in the country include Bonderitereg Multanreg P3reg Turcoreg Autophoreticreg Aquencereg and Passeritereg Henkel Chembondrsquos manufacturing facilities are located in Tarapur and Sitarganj with warehouses and offices across the country
Henkel CAC Pvt Ltd (formerly Converter Adhesives and Chemicals Pvt Ltd) established in 1985 is a subsidiary of Henkel AG amp Co KGaA Germany Headquartered at Mumbai in India Henkel CAC operates in business areas of manufacturing of solvent based solvent free and cold seal laminating adhesives used in flexible packaging industry Most of manufactured items comes under the brand of Liofol In addition to these Liofol products Henkel CAC sells the legacy CAC products in domestic and International markets
Henkel has three globally operating business sectors
Films
News
Laundry amp Home Care Cosmetics Toiletries Adhesive Technologies
The Companyrsquos success story started with a product from the Laundry amp Home Care business sector
Henkels cosmetic division is one of the largest of its kind in the world and its brand-name products business is continuously expanding
Henkel is the world market leader in adhesives sealants and surface treatments for consumers craftsmen and industrial applications
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Food Processing Sector in India
The food processing sector is critical to Indiarsquos development It establishes vital linkages and
synergy between industry amp agriculture the two pillars of the economy India is the worldrsquos second
largest producer of food and holds the potential to become the food provider of world The growth of
this industry will bring immense benefits to the economy raising agricultural yields enhancing
productivity creating employment and raising life-standards of people across the country especially
in rural areas
This industry ranks fifth in the country and employs 16 lakh workers comprising 19 of the
countryrsquos industrial labour force It accounts for 14 of total industrial output with 55 of the GDP
Its turnover is estimated at Rs144000 crore of which Rs111200 crore is in the unorganised
sector The liberalisation of the Indian economy and world trade and rising consumer prosperity has
thrown up new opportunities for diversification in the food-processing sector and opened new vistas
for growth
Fruit and Vegetable Processingndash National Environment
India has made a good progress on the horticultural map of the world with a total annual production
of horticultural crops touching over 149 million tonnes India is the second largest producer of the
fruits (455 Million tonnes) and vegetables (908 Million tonnes) in the world contributing 1023
and 1445 of the total world production of fruits and vegetables respectively It is also the largest
producer consumer and exporter of spices
The fruit and vegetable processing industry in India is highly decentralized A large number of units
are in the cottagehome scale and small scale sector having small capacities upto 250
tonnesannum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so The prominent processed items are fruit pulps and juices fruit based ready-
to-serve beverages canned fruits and vegetables jams squashes pickles chutneys and
dehydrated vegetables More recently products like frozen pulps and vegetables frozen dried fruits
and vegetables fruit juice concentrates and vegetable curries in restorable pouches canned
mushroom and mushroom products have been taken up for manufacture by the industry The
processing level in India is estimated to be around 2 as compared to about 80 in Malaysia 30
in Thailand and 60-70 in the UK and USA
The domestic consumption of value added fruit and vegetable products is however very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material lower
capacity utilisation non-adoption of cost effective technology high cost of finance infrastructural
constraints inadequate farmers-processors linkage leading to dependence upon intermediaries The
inability for market promotion is an important reason for inadequate expansion of the domestic
market
Indiarsquos share in the world trade of horticultural processed products too is miniscule ndash less than 1 per
cent This compares very unfavourably with countries like Malaysia (83) Philippines (78) Brazil
(70) and US (70) Indiarsquos major exports are in fruit pulp pickles chutneys canned fruits and
vegetables concentrated pulps and juices dehydrated vegetables and frozen fruits and vegetables
Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new productmarket opportunities India has the potential to
achieve a 3 share in the world trade of agricultural and food products by 2015 This implies an
annual growth rate of 14 till 2010 and 15 annual growth from 2010 as tabulated below
Year World Exports Indiarsquos Exports Indiarsquos Share () Growth Rate ()
2003 522 8 15 -
2010 770 15 20 14
2015 1020 30 30 15
World Exports of 2010 amp 2015 are projected on the basis of CAGR of 6 for the 5year period (1999-
2003)
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
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Food Processing Sector in India
The food processing sector is critical to Indiarsquos development It establishes vital linkages and
synergy between industry amp agriculture the two pillars of the economy India is the worldrsquos second
largest producer of food and holds the potential to become the food provider of world The growth of
this industry will bring immense benefits to the economy raising agricultural yields enhancing
productivity creating employment and raising life-standards of people across the country especially
in rural areas
This industry ranks fifth in the country and employs 16 lakh workers comprising 19 of the
countryrsquos industrial labour force It accounts for 14 of total industrial output with 55 of the GDP
Its turnover is estimated at Rs144000 crore of which Rs111200 crore is in the unorganised
sector The liberalisation of the Indian economy and world trade and rising consumer prosperity has
thrown up new opportunities for diversification in the food-processing sector and opened new vistas
for growth
Fruit and Vegetable Processingndash National Environment
India has made a good progress on the horticultural map of the world with a total annual production
of horticultural crops touching over 149 million tonnes India is the second largest producer of the
fruits (455 Million tonnes) and vegetables (908 Million tonnes) in the world contributing 1023
and 1445 of the total world production of fruits and vegetables respectively It is also the largest
producer consumer and exporter of spices
The fruit and vegetable processing industry in India is highly decentralized A large number of units
are in the cottagehome scale and small scale sector having small capacities upto 250
tonnesannum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so The prominent processed items are fruit pulps and juices fruit based ready-
to-serve beverages canned fruits and vegetables jams squashes pickles chutneys and
dehydrated vegetables More recently products like frozen pulps and vegetables frozen dried fruits
and vegetables fruit juice concentrates and vegetable curries in restorable pouches canned
mushroom and mushroom products have been taken up for manufacture by the industry The
processing level in India is estimated to be around 2 as compared to about 80 in Malaysia 30
in Thailand and 60-70 in the UK and USA
The domestic consumption of value added fruit and vegetable products is however very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material lower
capacity utilisation non-adoption of cost effective technology high cost of finance infrastructural
constraints inadequate farmers-processors linkage leading to dependence upon intermediaries The
inability for market promotion is an important reason for inadequate expansion of the domestic
market
Indiarsquos share in the world trade of horticultural processed products too is miniscule ndash less than 1 per
cent This compares very unfavourably with countries like Malaysia (83) Philippines (78) Brazil
(70) and US (70) Indiarsquos major exports are in fruit pulp pickles chutneys canned fruits and
vegetables concentrated pulps and juices dehydrated vegetables and frozen fruits and vegetables
Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new productmarket opportunities India has the potential to
achieve a 3 share in the world trade of agricultural and food products by 2015 This implies an
annual growth rate of 14 till 2010 and 15 annual growth from 2010 as tabulated below
Year World Exports Indiarsquos Exports Indiarsquos Share () Growth Rate ()
2003 522 8 15 -
2010 770 15 20 14
2015 1020 30 30 15
World Exports of 2010 amp 2015 are projected on the basis of CAGR of 6 for the 5year period (1999-
2003)
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
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Food Processing Sector in India
The food processing sector is critical to Indiarsquos development It establishes vital linkages and
synergy between industry amp agriculture the two pillars of the economy India is the worldrsquos second
largest producer of food and holds the potential to become the food provider of world The growth of
this industry will bring immense benefits to the economy raising agricultural yields enhancing
productivity creating employment and raising life-standards of people across the country especially
in rural areas
This industry ranks fifth in the country and employs 16 lakh workers comprising 19 of the
countryrsquos industrial labour force It accounts for 14 of total industrial output with 55 of the GDP
Its turnover is estimated at Rs144000 crore of which Rs111200 crore is in the unorganised
sector The liberalisation of the Indian economy and world trade and rising consumer prosperity has
thrown up new opportunities for diversification in the food-processing sector and opened new vistas
for growth
Fruit and Vegetable Processingndash National Environment
India has made a good progress on the horticultural map of the world with a total annual production
of horticultural crops touching over 149 million tonnes India is the second largest producer of the
fruits (455 Million tonnes) and vegetables (908 Million tonnes) in the world contributing 1023
and 1445 of the total world production of fruits and vegetables respectively It is also the largest
producer consumer and exporter of spices
The fruit and vegetable processing industry in India is highly decentralized A large number of units
are in the cottagehome scale and small scale sector having small capacities upto 250
tonnesannum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so The prominent processed items are fruit pulps and juices fruit based ready-
to-serve beverages canned fruits and vegetables jams squashes pickles chutneys and
dehydrated vegetables More recently products like frozen pulps and vegetables frozen dried fruits
and vegetables fruit juice concentrates and vegetable curries in restorable pouches canned
mushroom and mushroom products have been taken up for manufacture by the industry The
processing level in India is estimated to be around 2 as compared to about 80 in Malaysia 30
in Thailand and 60-70 in the UK and USA
The domestic consumption of value added fruit and vegetable products is however very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material lower
capacity utilisation non-adoption of cost effective technology high cost of finance infrastructural
constraints inadequate farmers-processors linkage leading to dependence upon intermediaries The
inability for market promotion is an important reason for inadequate expansion of the domestic
market
Indiarsquos share in the world trade of horticultural processed products too is miniscule ndash less than 1 per
cent This compares very unfavourably with countries like Malaysia (83) Philippines (78) Brazil
(70) and US (70) Indiarsquos major exports are in fruit pulp pickles chutneys canned fruits and
vegetables concentrated pulps and juices dehydrated vegetables and frozen fruits and vegetables
Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new productmarket opportunities India has the potential to
achieve a 3 share in the world trade of agricultural and food products by 2015 This implies an
annual growth rate of 14 till 2010 and 15 annual growth from 2010 as tabulated below
Year World Exports Indiarsquos Exports Indiarsquos Share () Growth Rate ()
2003 522 8 15 -
2010 770 15 20 14
2015 1020 30 30 15
World Exports of 2010 amp 2015 are projected on the basis of CAGR of 6 for the 5year period (1999-
2003)
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
The fruit and vegetable processing industry in India is highly decentralized A large number of units
are in the cottagehome scale and small scale sector having small capacities upto 250
tonnesannum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so The prominent processed items are fruit pulps and juices fruit based ready-
to-serve beverages canned fruits and vegetables jams squashes pickles chutneys and
dehydrated vegetables More recently products like frozen pulps and vegetables frozen dried fruits
and vegetables fruit juice concentrates and vegetable curries in restorable pouches canned
mushroom and mushroom products have been taken up for manufacture by the industry The
processing level in India is estimated to be around 2 as compared to about 80 in Malaysia 30
in Thailand and 60-70 in the UK and USA
The domestic consumption of value added fruit and vegetable products is however very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material lower
capacity utilisation non-adoption of cost effective technology high cost of finance infrastructural
constraints inadequate farmers-processors linkage leading to dependence upon intermediaries The
inability for market promotion is an important reason for inadequate expansion of the domestic
market
Indiarsquos share in the world trade of horticultural processed products too is miniscule ndash less than 1 per
cent This compares very unfavourably with countries like Malaysia (83) Philippines (78) Brazil
(70) and US (70) Indiarsquos major exports are in fruit pulp pickles chutneys canned fruits and
vegetables concentrated pulps and juices dehydrated vegetables and frozen fruits and vegetables
Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new productmarket opportunities India has the potential to
achieve a 3 share in the world trade of agricultural and food products by 2015 This implies an
annual growth rate of 14 till 2010 and 15 annual growth from 2010 as tabulated below
Year World Exports Indiarsquos Exports Indiarsquos Share () Growth Rate ()
2003 522 8 15 -
2010 770 15 20 14
2015 1020 30 30 15
World Exports of 2010 amp 2015 are projected on the basis of CAGR of 6 for the 5year period (1999-
2003)
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Source Vision Strategy amp action Plan for Food Processing Industries in India Prepared by Rabo India
Finance Pvt Ltd for Ministry of Food processing Industries Government of India April 2005
Major Challenges Constraints and Concerns
Despite policy initiatives growth potential and significant achievements there are several disturbing
trends as delineated here
In India the value addition to food fortification is only 7 compared to as much as 23 in
China 45 in Philippines and 188 in the UK The small-scale and unorganised sectors account for
75 of the total industry
External liberalisation poses threats of stiffer competition under a new world trade order
with WTO agreements relaxing quantitative restrictions and non-tariffsanitary barriers on importing
countries which exposes the Indian farmer to world market forces Under the new trade regime the
food sector will be confronted by challenges of trade related Intellectual Property Rights comprising
patent laws copyrights trade links etc
The inherent strength of high raw material production and large domestic market base has
to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products
Advances in bio-technology have enabled production of Genetically Modified (GM) foods
These have already appeared in some countries GM foods need be critically examined on their
good and adverse impacts on human health
Taxes on processed food in India are among the highest in the world No other country
imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation There is excise duty of 16 in the form of CENVAT levied on food products
Besides there is sales tax octroi mandi samiti entry tax and customs duty on material levied by
the CentralStateLocal bodies The net effect ranges from 21 to 30 on various food items
Commercial RampD activities in the food industry have remained confined to only a few areas
RampD activities have scarcely emerged from the laboratory to be extensively adopted on the field
Indian brands have yet to acquire an image in the international markets because of poor
global marketing
Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects There
are no suitable insurance schemes for such projects most of which deal in export of perishables In
financing such projects the banks face considerable credit risks With new technology the risk
perception is higher than the existing one
The sector has been characterised by poor marketing transport and communication
infrastructure The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate Erratic and inadequate power supply lack of
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
roads education and health facilities and null or low rural industrialisation accentuates the
problems
Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the modern retail industry in India It started operations with the first store in suburban Mumbai and is now a multi-channel retailer with 33 large format department stores and online presence
From its inception Shoppers Stop has progressed to become a premier Fashion amp Lifestyle destination for the family Today Shoppers Stop is known for its superior quality products services and above all for providing a complete shopping experience
With an immense amount of expertise and credibility Shoppers Stop has become the highest benchmark for the Indian retail industry In fact the companyrsquos continuing expansion plans aim to help Shoppers Stop meet the challenges of the retail industry in an even better manner than it does today
Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more than 50 stores across the country It has also invested in HyperCITY a hypermarket which has been rated as amongst the top 100 stores worldwide
With exclusive brands as well as domestic and international brands Shoppers Stop continues its expansion across the country with the department stores bookstores and hypermarkets
Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement with Mothercare and cosmetic boutique stores with MAC
A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad airports in India
Shoppers Stop also has an online store httpwwwshoppersstopcom which within a few months of launch has become one of the most popular shopping destinations for online shoppers
Headquarters Mumbai Area IndiaIndustry RetailType Public CompanyStatus OperatingCompany Size 5000 employees 2007 Revenue 8881 mil [INR] (28) Founded 1991
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
Common Job Titles
Manager 12
Department Manager 9
Merchandiser 6
Visual Merchandiser 6
Unit Head 5
Top Schools Univ of Mumbai 17
National Inst of Fashion Tech 13
Univ of Pune 4
Delhi Univ 4
Kendriya Vidyalaya 3
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Median Age 29 years
Median Tenure 2 years
Gender Male 69
Female 31
MUMBAI Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in the economy that boosted purchasing power and in turn their same-store sales
Riding high on buoyant sentiment the companies expanded their footprint which is also expected to reflect in the profit numbers
A media poll of brokerages expects Pantaloon Retail the countrys largest listed retailer to report a 29 per cent rise in net profit on a sales growth of 32 per cent
Watch and jewellery retailer Titans profit is seen jumping 41 per cent and sales 34 per cent
We expect double-digit same-store sales growth to continue and that will support a healthy rise in revenues and margin expansion on a year-on-year basis said an analyst with brokerage Edelweiss
Same-store sales which is sales at stores that have been in existance for over a year are a key indicator of growth for retailers
Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-Independence Day discounts which resulted in same-store sales growth of 30-40 percent analysts said
Pantaloons presence across price points and categories helps the company to be in a better position than all its peers A double-digit same-store sales growth and further space addition will lead to healthy growth in revenues said Viraj Nadkarni an analyst with Angel Broking
We expect it to lead with a 43 per cent top-line growth
However numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to the spin-off of its value retail business under Future Value Retail in September and the merger of the Home Retail segment with itself in February
K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a pick-up in lifestyle retailing
Shoppers Stops performance is expected to continue to improve in the coming quarters on the back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to consolidation with Hypercity brokerage Edelweiss said in a note
For Titan an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by 20 per cent
There is likely to be a slight dip in margins as premium watches sell more during the Diwali season which will be factored in quarter three this time he added
Going ahead contribution from lifestyle retail is seen rising significantly
While we expect value retail to strengthen further we expect lifestyle retail to extend its growth trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods said Angel Brokings Nadkarni
Welcome to the Hatsun world Indias largest private dairy From a modest icecream manufacturer to one of the leading names in
Indias dairy sector in just a span of three decades Hatsun now stands majestically as a hallmark of successful entrepreneurship
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Be it in the dedication to quality in employing the worlds latest technology innovative marketing strategies or bringing prosperity
to hundreds of thousands of farmers in the south
It started as a creamy dream in 1970 Arun Icecreams the rich delicious brand that has captured the hearts of millions of
icecream lovers With over 70 delightful varieties it is the No 1 selling icecream in south India Arun Icecreams is manufactured at
the most modern plant of its kind in Chennai From the ingredients to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality
and world-class manufacturing facilities Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India These and the many Arun mini-parlors in the rural areas provide employment to thousands of people When the vision is
clear and the dedication total growth follows and Hatsun expanded
When the market was ruled by unhygienic milk Hatsun came up with Arokya - the standardized homogenised and bacteria
clarified milk Arokya milk is still unsurpassed in purity thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha This product is Hatsuns proud
contribution of a superior quality lower fat milk which Hatsun calls Cows milk Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow No wonder then Hatsun Komatha milk is hailed as the most suitable milk for
the whole family Loved by kids and adults alike for its taste and freshness
Hatsun handles a total 18 million litre a day Hatsuns quest for quality starts at procurement two times a day 365 days of the
year at over a thousand collection centers from more than a hundred thousand farmers Hatsun sources its milk with an ever
watchful eye always keen on quality It is an enthusiastic and bustling activity when milk takes its first step in its journey to the
consumers homes
Code of Conduct for Directors and Senior Management Personnel
Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically All Directors and Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote
The following principles guide their conduct
1 Honest and ethical conduct including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships2 Full fair accurate timely and understandable disclosure in reports and documents that the company files with or submits to the Stock Exchanges Registrar of Companies Securities and Exchange Board of India and in other public communications made by the company 3 Compliance with applicable laws and governmental rules and regulations4 The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code and 5 Accountability for adherence to this Code of Conduct
1 Honest and Integrity
The Directors and Senior Management Personnel (collectively referred to as Officers) shall act honestly in good faith and in the best interests of the Company as a whole in all of their dealings for the company There will not be any discrimination on the grounds of a persons race religion gender marital status or disability There will not be false promises or commitments and the Company does not intend or would be unable to honour Officers shall adhere to the truth and should not mislead directly or indirectly nor make false statements nor mislead by omission
2 Confidentiality of Information
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in accordance with their duties as an Officer Officers will respect the privacy of others
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
3 Personal Transactions and no misuse of information position and property
Officers owe the Company a duty of loyalty All personal or other business dealings of Officers will be kept separate from their dealings as an Officer of the Company and shall not misuse information their position or opportunities arising as a result of their position improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company Officers shall not use the name of the Company to further any personal or other business transaction The Officers shall use goods services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided
4 Disclosure of Interests
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time Officer shall fully disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time to time The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of interest
5 Compliance with the Law
Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company Officer must comply with all laws rules regulations and corporate governance systems of the Company at all times
6 Lawful and Ethical Behaviour
Officers will promote and encourage ethical behaviour If an Officer becomes aware of unlawful or unethical behaviour he or she will report it to the Chairman or Chief Executive Officer The identity of the Officer reporting the violation in good faith will remain confidential
Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company Officers shall not accept any personal gain even if offered without any insistence
COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable behavior
These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management Personnel which have been reviewed and approved by the Board of Directors of the Company in order that the Company can best prevent violations under various Acts Rules and Regulations These procedures are Company policy Failure to adhere to them may result in appropriate disciplinary actions against the officers concerned
R G CHANDRAMOGANChairman and Managing Director
Hatsuns dairies are ISO 90012000 and HACCP (Hazard Analysis Critical Control Point) certified The Salem plant has received
ISO 14001 and been certified eco-friendly The quality assurance of Hatsun ensures that stringent quality standards and norms of
American Dairy Products Institute (ADPI) are fully met The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management Ahmedabad Indias leading business school
1970
Ms RG Chandramogan amp Co set up
Arun Icecream Launch
1978
First Arun Icecreams Parlour
1986
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
March- Ms Hatsun Foods (HFPL) incorporated as a private limited company The same year HFPL was admitted as a partner in
Ms RG Chandramogan amp Co
1986
April HFPL takes over Ms RG Chandramogan amp Co HFPL was allowed to register the brand name Arun in its own name
subject to a
royalty payment of 1 on the gross icecream sales
1991
MPD Factory (Atlantic) - Salem Inauguration
1993
Hatsun Dairy Private Limited (HDPL) promoted by Ms Hatsun Foods
Private Limited established
Salem Dairy - Inauguration
1995
Ms Hatsun Foods goes public Changes name to Hatsun Agro Product Limited Icecream Factory - Red Hills - Inauguration
1998
Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited
2000
Belgaum Dairy - Inauguration
Kanchipuram Dairy Acquisition
2004
Dairy Ingredient Plant - Inauguration (Salem amp Kanchipuram)
A retail operations manager runs all aspects of a retail business These managers work for many types
of companies from shoe stores to electronics shops to automobile dealerships They have many roles
but their main responsibilities include making sure their employees work as a team keeping customers
satisfied and helping the company remain profitable
Basics1 Retail operations managers hire other managers to oversee the various
departments such as marketing advertising sales and public relations They set guidelines and policies forming strategies and sales goals for their employees to meet Retail operations managers dont have to be experts in every aspect of retail but they must put workers in place who are Occasionally they must perform everyday tasks themselves--taking stock of merchandise and getting involved in the billing process
Skills2 Retail operations managers must be strong leaders not only directing
their team but making sure company morale stays high They should possess strong communication skills addressing their employees with confidence and purpose They also must be well-organized driven analytical and capable of identifying and overcoming issues Most retail operations managers need a strong understanding of marketing and sales as well as a sound knowledge of math computers and keeping a budget
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Background3 Most retail operations managers possess at least a bachelors degree
along with years of experience within the industry Many have proven to be successful managers and salespersons at the lower levels and have displayed an awareness and passion for customer service Some have proven themselves in other sales-related industries Areas of study for aspiring retail operations managers typically include marketing advertising business administration communications finance and economics
Prospects4 Opportunities for top executives such as retail operations managers are
expected to experience little or no change through the next decade according to the US Bureau of Labor Statistics Much of their outlook depends on their specific industry For instance some sales managers are expected to see their opportunities grow by 5 percent from 2008 to 2018 the BLS reported while those in the automobile industry are projected to experience a decrease of 5 percent
Earnings5 Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee as well as their experience and overall responsibilities According to PayScalecom retail operations managers earned anywhere from nearly $38000 to more than $62000 per year as of April 2010
What is Luxury The problem with the word lsquoluxuryrsquo is that it is at once a concept a subjective impression and apolemical term often subjected to moral criticism Thus what is luxury for some is just ordinary for others while some brands are qualified as lsquoluxury brandsrsquo by one half of the public opinion others are simply considered as lsquomajor brandsrsquo by the other half Likewise given the economic crisis it has become ethically more dubious lsquoto like luxuryrsquo or lsquoto pursue luxuryrsquo Real luxury brands remain attractive but the word itself has lost its clout and sparkle because of the economic downturn in industrialized countries The word lsquoluxuryrsquo has falled out of favor a little a hindrance to market researchers who wish to measure their customersrsquo sensitivity to luxury
In economic terms luxury objects are those whose price quality relationship is the highest on the market By lsquoqualityrsquo economists mean lsquowhat they know how to measurersquo ie tangible functions Thus researchers report defines luxury brands as those which lsquohave constantly been able to justify a high price ie significantly higher than the price of products with comparable tangible functionsrsquo This strictly economic definition of the luxury brand does not include the notion of an absolute minimum threshold What counts indeed is not the absolute price but the price differential between lsquoluxuryrsquo products and products with comparable functions This price differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars
What does the luxury concept actually encompass What are the essential attributes of this category of so-called lsquoluxuryrsquo items Luxury comes from lsquoluxrsquo which means light in Latin This explains the typical characteristics of so called luxury items Luxury glitters The fact that luxury is
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
visible is also essential luxury must be seen by the consumer and by others That is why luxury brands externalize all of their signs the brand signature must be seen and recognized on the person wearing the brand and it must be recognizable worldwide Made to perfection luxury items stand out and embody certain ideals Luxury defines beauty it is an art applied to functional items
Luxury constantly seeks to escape time constraints by focusing on leisure or by concealing the effects of time with wigs and face makeup As for perfume it also helped to distinguish aristocrats from the common folk As we can see it is significant that modern luxury brands have falled for the cosmetics and perfume industry not to mention the other essential class attributes clothing and jewels Etymology is not the only means of deciphering the mystery of the concept of luxury Sociology and history can also help Luxury is the natural accompaniment of the ruling classes It is indeed widely acknowledged that luxury plays a classifying role according to which a restricted group bonds together and distances itself from the rest of society in terms of price and preferences In this respect luxury brands are just perpetuating and exemplifying the signs and attitudes of the former aristocracy
Not many luxury symbols exist but those that do represent the past privileges of the European aristocracy living a life of leisure free of all working money time or space obligations Everything is made to conceal mere practical utility the leather the polished wood the hushed engine are multiple details which make them more like a drawing room than a car In this respect Ferrari and Porsche are regarded as prestigious sport brands rather than typical examples of luxury Created by a talented engineer they certainly convey the mythical quest for speed but they nonetheless embody above all the basic automobile function mobility
Principles of Luxury Management
Researchers have pointed out some of the basic principles of luxury brand management for instance the necessity of protecting clients from non-clients by creating a distance a no-mix area or as economists would put it entrance barriers for those who are not invited This is implemented through prices and selective and exclusive distribution as well as the aesthetic dimension of the products But for the distinctive sign to work it must be known by all Thus paradoxically luxury brands must be desired by all but consumed only by the happy few
Loss of control occurs precisely when luxury brands no longer protect their clients from the non-clients In our open democratic socities groups are constantly trying to recreate separations of all kinds The latter do eventually disappear when for instance prestigious brands get distributed in hypermarkets The infinite multiplication of Vuitton bags also hinders the distinctive function of luxury Likewise distributed in large quantities Channel T-Shirts ended up being worn by an excessive number of women far beyond the initial target
The modern luxury brand must belong to those who rule the world today Their reference points are no longer land or castle but mobility It is true that excessive practicality can harm the luxury product- in that respect Seiko and Sony are not luxury brands Conversely though if the products are not practical enough they gradually start to lag and become obsolete
Luxury brands cannot just ignore the threat of basic brands which are strictly focused on practicality by constantly improving the quality of their products the latter are indeed continually redefining the ever increasing standards of basic quality However prestigious and potentially attractive Jaguar may have been it was doomed by its deficiencies both in its engine and in its basic components By relying too heavily on its symbolic added value Jaguar actually lost some of its global luxury value and attractiveness Its legend was no longer leading it it had been left behind
Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
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Basic brands are meant to democratize progress thanks to a virtually circular mechanism and to competition Quality standards are rising all the time even at the cheapest price possible thanks to mass production Being partly freed from price constraints luxury brands on the contrary perpetuate an exceptionally high level of quality For them a wide variety of sensations counts just as much as a wide variety of functions
That is why they use the finest materials for their products and extensively customize them in order to prove how customer focused they are In doing so they actually condemn mass production as they make service an integral part of their offer Anything that is considered optional or added on for normal brands is the norm for luxury brands because for them what is extra is ordinary Luxury brands would be wrong however to think that they are totally safe
Luxury does not always have to be exorbitant In the car industry for instance technological improvements have made production more flexible and thus capable of providing greater scope for customization at no extra cost Therefore the customization differential is being jeopardized by the cost differential due to the deliberate differences in the two production processes Neither the rarity of the object nor the potency of the brand image can alone continue to justify the price differential As we see luxury defines the ideal degree of personalization and sublimation of a given object against which the more basic brands can measure themselves
In turn the latter challenge luxury by their continuous technical improvements and very competitive pricing Luxury watches for instance were challenged by quartz technology developed for the mass market which soon established new standards of precision and reliability and which no mechanical system could possibly meet-within the limits of realistic production costs Both the economic cost of this quality differential and the negative impact on brand image were all the greater as the renown of luxury watch brands had long been associated with lifetime guarantees
Never Complain Never Explain - By Greg HickmanQuite a number of years ago I stumbled across a phrase in a magazine that really piqued my interest The phrase simply said never complain never explain From the moment I read it those four words really hit home with me To my way of thinking they summed up the philosophy of all winners A winner should never waste his or her valuable time complaining or making excuses
I decided to tape a piece of paper containing this phrase to a wall in my office along with an accompanying challenge As soon as I went an entire day without voicing a complaint or offering up an excuse I could take the message down
I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my will for a day or so The first day or two quickly passed without me accomplishing my goal All I need to do is toughen up a little and Ill get the job done
No problem I confidently reassured myself A month later the piece of paper was still taped to my wall
I couldnt believe it I still had not gone just one day without making a complaint or offering up some sort of excuse In fact I had complained about something and made an excuse about something else at least one time every single day for a month Not one or the other - but both
I was disappointed that I had failed to accomplish what had originally seemed like such an easy goal But more than that I was embarrassed Now I was really motivated to answer the challenge and get this message off my wall once and for all Make no mistake about it I would get the job done this time
for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
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for sure
Five years later that torn tattered yellowed piece of paper with the simple little message was still hanging defiantly on my office wall
How could this have happened to me I really gave it a good shot but one way or another I would always find a way to slip up at some point during each and every day and start complaining or explaining about something or another One thing I learned from this challenge was we all complain a lot more than we think we do and we make excuses left and right
We blame people and things and circumstances for just about everything If you think not go ahead and put the phrase up on your wall and see if you can go one entire day without offering up one single excuse and without making one single complaint of any kind No blaming no complaining no criticizing no excuses -- for one entire day
I know what youre probably thinking right about now You think it will be easy dont you Ha I thought so too I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit of mine
Even if you and I fail to live a single day devoid of any personal complaining or explaining we can still significantly cut down on the amount of complaints and excuses we make and that is indeed a very good start isnt it When you take on this challenge you will begin eliminating a lot of negative feelings and destructive actions from your life and consequently will become a much better person to be around
There is no better time for you to get to work on your very own never complain never explain challenge than right now All you have to do is stop complaining and quit explaining and get started today
To comment on this article or to read comments about this articlego here
About the Author
Greg Hickman of The Motivational and Inspirational Corner a website dedicated to helping Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves Contact Greg at gregmotivational-inspirational-cornercom or go to their website at httpwwwmotivational-inspirational-cornercom
Dear Hemant
The next few years will be challenging for most people and most businesses The deep economic uncertainty in the global market is really worrying while political instability and massive increases in competition keep many up at night (youre no longer competing only with people in your own city - youre now competing with people across the world) And all of this messiness isnt going to get better any time soon BUT FOR A FEW PEOPLE THERES SOME VERY GOOD NEWS
While many people and businesses are happy just to stay afloat in these troubling times a small group have discovered that this period is offering THE GREATEST OPPORTUNITY in the history of business to overtake your competition double or even triple your sales and build a company that is not merely
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
successful but iconic
And this small group of people also understands that the opportunities that this turbulent time presents are not just chances to build your business along with your wealth and brand This group truly gets that right here right now is an incredible time to take your career into rare air (because most people are too stressed out) to take your health to its peak to really love life (while everyone else is hanging on for dear life) and to grow your happiness to where you know it needs to be Yes my friend this time is your time - if you know how to capitalize on it - and have the tools to really make some quantum leaps in your success
Ok So heres where I want you to pause (in this world of Twitter and Facebook and endless emails where we often dont take time to pause and reflect anymore) Please ask yourself Am I REALLY living my highest potential at work and in my personal life And have I lost sight of the dreams I had when I was younger and the life I truly wanted to live Lifes ultimately a pretty short ride isnt it And trust me you dont want to be laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY BUSY DOING NOTHING
As I near the half-time point of my own life (50) Im paying even more attention to whats most important Because I see how easy it is to major in minor things and become addicted to distractions that in the end amount to nothing Im more clear than ever before that you and I and everyone around us has the potential to do genius-level work positively influence the lives of thousands of people have fantastic lifestyles that make us really really happy - and live a life THAT MATTERS
A DEFINING MOMENT IN YOUR CAREER - And Life
For the past 15+ years Ive devoted (yes devoted) my life to helping people live their best potential shift from busyness to work that matters and Lead Without a Title My lifes mission is a simple one to help as many people as possible work and live at wow Why So that you dont get to the end of your career (or your life) and feel heartbroken because you never did anything important achieved anything of significance and played small with the awesome potential you were meant to express
YOU NO LONGER NEED TO STRUGGLE AND WONDER WHY SOME PEOPLE SEEM SO LUCKY
Theres something I find really fascinating and I wonder if you have seen this too Most people work really hard try their best and are gooddecent people But they never seem to get ahead in their careers or in their lives (if this is you your life is about to change if youre ready to make a simple change) And then there are those few lucky souls who do about the same amount of work (or less) and yet money success peak health and enduring happiness just seems to fall into their laps They just seem to automatically attract the best things that life has to offer Are they really any different from you
No Of course not But working harder and doing more is not the way to become more successful (thats such an oldbroken model of thinking) The key is thinking and working smarter BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS BETTER (I love Einsteins famous quote the definition of insanity is doing the same things and expecting different results) The key to getting the results that the best of the best get is to do those few (and simple) things that the best of the best do (but will never ever tell you about because they dont want you to know the secrets of their success)
On Tuesday November 2 Im going to offer you a very special opportunity that I sincerely want you to embrace Youre going to get the chance to be one of the exclusive group of people I told you about those people who just seem to easily and automatically make their dreams and goals come true Those successful people who radiate optimism (in an increasingly negative world) are in exceptional health are stars at work have financial freedom and live beautiful lives (hey success at work is so important but so is loving life and you can have both) So heres whats going to happen
On Tuesday November 2 Im going to release a small limited production run of my new 12 DVD
program based on the proprietary ideas and tools Ive shared with many of the best companies in the world (businesses like Nike FedEx Microsoft GE IBM and thousands of entrepreneurs from across the planet) who have used these ideas to create EXPLOSIVE business results as well as take their personal lives to all-new levels of health happiness meaning - and fun
This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
HERE ARE THE GAME-CHANGING BENEFITS
All things being equal the 1 competitive advantage of a business in todays economy comes down to one thing growing and developing people who Lead Without a Title faster than your competition And the 1 way for you to not only keep your job but ensure that you take your career to the highest level of success is to show leadership And truly exceptional performance is not the result of natural gifts but doing certain things that most people have never been taught to do
In the first 8 DVDs of The Lead Without a Title System you will discover
How to develop the same mindset that world-class entrepreneurs sports stars and geniuses like Picasso and Da Vinci developed to do work that matters
The 11 things that GREAT companies do to build teams of peak performers - who deliver Real Results
Specific tactics that you can use to make quantum leaps in your effectiveness at work including ways to Lead Without a Title become an inspirational leader and double your productivity - while working less
Tools to stay super positive in high-stress times
5 ways to be so good at what you do that people cant ignore you (so that the next 6 months are the most successful of your career to date)
Strategies to build A Culture of Winning at your company so you grow sales and your brand in these turbulent times
Very valuable action-steps to really balance work with your family and enjoy life much more (so you dont get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same workshop that has generated OVER ONE BILLION dollars in value for our corporate clients) Its like having me personally coach you and your entire team on how to build a great company as well as lead like the superstars in business do for a fraction of the cost that our big-name clients line up to pay And I suggest you and your team use the program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
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This inspiring and strikingly powerful new DVD program is called The Lead Without a Title System A Revolutionary Process for Doing Your Best Work It contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains exactly how to build a great company do world-class work so your career really flies and have a life that is nothing less than exceptional Many of the FORTUNE 500 and our other clients have paid over $50000 to have me deliver this workshop to their top performers Now - for the first time - Im making the workshop available to you in an easy to watch yet transformational DVD training program that you and your entire team can watch to get the same results that the best businesspeople and companies in the world have got from the strategies and ideas that Ive taught them All for a fraction of the cost our big name clients have paid me to share these game-changing ideas and strategies in private sessions with their top people
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As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
everyone on your team - as well as keep everyone inspired engaged and totally focused on the things that count The results will be spectacular
BONUS 4 MORE DVDS THE GROW THE LEADER TEAM TRAINING PROGRAM
As I mentioned our FORTUNE 500 clients across the world have paid $50000+ to invest in this Lead Without a Title workshop that Im now making available on the set of the first 8 DVDs on Tuesday November 2 Not only are we only producing a limited number of these programs but after that my team and I will probably make it into a far more expensive online training program
But I really want you to benefit from this new product Im offering on Tuesday November 2 so Im adding something that I hope will make things even more exciting and valuable for you Ive added 4 extra DVDs that contain my acclaimed Grow the Leader Team Training Program on it This training program has been used by organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of the organization And the price for this program alone is $4995 But in this exclusive offer Im adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost Just imagine getting the same program that the best organizations in the world use to grow leaders - at no extra cost
Vision
To be a Global Retailer in India and Maintain No1 position in the Indian Market in the Department Store Category
Positioning
Shoppersrsquo Stop is positioned as a family store delivering a complete shopping experience defined by its mission vision and values
1991 Shoppers Stop launches at AndheriSetting up shop in 1991 with its flagship store in Andheri Mumbai Shoppersrsquo Stop is a member of the K Raheja Corp of Companies Shoppersrsquo Stop is the first retail venture by the K Raheja Corp Promoted by Mr Chandru L Raheja Mr Ravi C Raheja and Mr Neel C Raheja the K Raheja Corp have been leaders in the
construction business for over 48 years
With its wide range of merchandise exclusive shop-in-shop counters of international brands and world-class customer service Shoppersrsquo Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience
India ndash 2000 amp Beyondhellip Expanding its operations to Bangalore Hyderabad Jaipur Delhi Chennai Mumbai (Andheri Bandra Chembur Kandivli Mulund) Pune Gurgaon and Kolkata Shoppersrsquo Stop is today recognised as Indiarsquos premier shopping destination With a customer entry of about 50000 customers a day a national presence with over 600000 square feet of retail space and stocking over 250 brands of garments and accessories Shoppersrsquo Stop has clearly become a one stop shop for all customers
Customer ProfileShoppersrsquo Stoprsquos core customers represent a strong SEC A skew They fall between the age group of 16 years to 35 years the majority of them being families and young couples with a monthly household income above Rs 20000 and an annual spend of Rs15000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Range of merchandisehellipThe stores offer a complete range of apparel and lifestyle accessories for the entire family From apparel brands like Provogue Color Plus Arrow Levirsquos Scullers Zodiac to cosmetic brands like Lakme Chambor Le Teint Ricci etc Shoppersrsquo Stop caters to every lifestyle need Shoppers Stop retails its own line of clothing namely Stop Life Kashish Vettorio Fratini and DIY The merchandise at Shoppersrsquo Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill Their motto ldquoWe are responsible for the goods we sellrdquo
Customer Rewards ndash The First CitizenShoppersrsquo Stoprsquos customer loyalty program is called The First Citizen The program offers its members an opportunity to collect points and avail of innumerable special benefits Currently Shoppersrsquo Stop has a database of over 25 lakh members who contribute to nearly 50 of the total sales of Shoppersrsquo Stop
International AffiliationsShoppersrsquo Stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29 experienced retailers from all over the world which include established stores like Selfridges (England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya (Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) This membership is restricted to one member organization per countryregion
Acquisitions
The Organisation in 2000 along with ICICI ventures also acquired the reputed bookstore ldquoCrosswordrdquo which offers the widest range of books along with CD-ROM music stationery and toys Services like Dial-a-book Fax-a-book and Email-a-book enable customers to shop from their homes Crossword currently has 18 Stores
The IT Backbone Realising the role of IT way back in 1991 Shoppersrsquo Stop was among the first few retailers to use scanners and barcodes and completely computerise its operations Today it is one of the few stores in India to have retail ERP in place which is now being integrated with Oracle Financials and the Arthur Planning System the best retail planning system in the world With the help of the ERP they are able to replicate stores open new stores faster and get information about merchandise and customers online which reduces the turnaround time in taking quick decision
Supply Chain ManagementUnderstanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led Shoppersrsquo Stop to streamline its supply chain The company has developed process manuals for each part of the logistics chain These modules include vendor management purchase order management stock receiving systems purchase verification and inventory build up generation and fixing of price and store tags despatch of stocks to the retail floor and forwarding of bills for payment
Future PlansShoppersrsquo Stop aims to position itself as a global retailer The company intends to bring the worldrsquos best retail technology retail practices and sales to India Currently they are adding 4 to 5 new stores every year
Click here to see the job opportunities
COMPANY DETAILS
Name of the Organisation Shopperrsquos Stop Ltd
Head of the Organisation Mr B S NageshCustomer Care Associate Managing Director amp CEO
Address
Corporate Office Eureka Towers 9th Floor Link Road Malad West Mumbai 400064 Tel 28809898 28447337Fax 28808877
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Shopperrsquos Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment of Mr Govind Shrikhande as the Managing Director effective from July 29 2010
Mr Shrikhande took charge of Shopperrsquos Stop Limited as the Customer Care Associate President amp CEO in the month of August last year The retail giant has since grown significantly in profits completed their
acquisition of 51 equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India
Mr Shrikhande has been with the company for the last 10 years He started his association with the company in 2001 as the Vice President of Buying amp Merchandising function and has since grown within the company managing roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated
as the President amp CEO in 2009 and eventually to Managing Director in 2010
Since joining Shoppers Stop Mr Shrikhande has played a key role in the companyrsquos tremendous growth from 7 stores in 2001 to 33 stores at present He was also instrumental in Re-branding initiative of the brand ndash Shoppers Stop in the year 2008 which reinvigorated the brandrsquos market positioning product and service
offerings
Mr Shrikhandersquos strong performance as head of Shoppers Stop his passion for developing innovative products amp services and his emphasis on creating an enjoyable workplace for employees was recognized in
2009 with the prestigious Clothing Manufacturers Association of India felicitated him as the lsquoRetail Professional of the Yearrsquo amp in early 2010 he was recognized as the lsquoMost Admired Fashion Retail
Professionalrsquo at the Images Fashion Awards
Shopperrsquos Stop Ltd a pioneer in modern retailing in India has been promoted by K Raheja Corp Group (Chandru L Raheja Group) one of the leading groups in the business of real estate development and hotels
in the country Shopperrsquos Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt Ltd operates more than 30 lakhs sq ft in the country
Shopperrsquos Stop Ltd
More Shoppers Stop News
Speaking on the sidelines of India Shopping Forum in Mumbai Mr Govind Shrikhande CEO of K Raheja Group promoted Shoppers Stop revealed that they will invest Rs 125 billion in expanding the store count
He said ldquoWe plan to open between 10-12 new stores in this fiscal year in metros and tier II cities which will entail an investment of Rs 125 billion Currently Shoppers Stop operates 29 stores across India
Shoppers Stop posted a turnover of Rs 157 billion in the fiscal year ended March 2010 which is up by 12 percent when corresponded with the previous fiscal It hopes to achieve a growth of 20 percent in the current fiscal
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Govind Shrikhande Customer Care Associate President and CEO Shoppers Stop talks with Varun Jain
about their expansion plans the importance of licensed merchandise and more
Varun Jain (VJ) What are the future expansion plans of the Shoppers Stop What would be the
investment for the same
Govind Shrikhande (GS) We are looking to expand Shoppers Stop total retail space from the current 19
million sq ft to a commanding 35 million sq ft in the next four years We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time We currently have 33 Shoppers Stop
outlets and we plan to add 10-12 new stores in this fiscal with an investment of Rs 120 crores
VJ How does Shoppers Stop look at the competition with so many same format stores present in
the market
GS The competition is multifold and it is for everyone to see The competition is not only in the
departmental store but also in the specialty store You have to really create your own space We have two
formats One of them is a private label where we have a Globus Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates So each of us chose to play on certain strength
We have tried to build an assortment that is very strong in cosmetics jewelry skincare watches and
footwear So you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in Menswear are strong women ethnic wear is likewise and kidswear
with Mother care again is very strong
VJ What is the ratio between the international brands and the private labels in the store
GS In Shoppers Stop we have around 18 of private labels and more than 50 would be the international
brands As for now we are not planning to introduce more private labels in here We would operate in 18-
20 space only Our focus is on international brands We are trying to create an image of house of brands
for the fashionable family
VJ Why more focus on the international brands when most of them have their exclusive stores in
the country
GS See we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores For instance if I as a consumer have to pick a shirt then I would pick it from a
selection of brands that operates in the same category I can pick a Van Heusen Louis Phillip or an Arrow
whichever fits best So we are yet to see Indian consumer sticking to a brand Say he only wears a Tommy
in this case going to an exclusive store benefits But the majority will go in for a departmental store
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
VJ Any plans of Shoppers Stop going in for the Franchise business model
GS For Shoppers Stop we are not considering the franchising business model although Crossword stores
are on Franchising
VJ We have seen Shoppers Stop selling licensed merchandise too often be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise How important is selling the licensed merchandise from Shoppers
Stop point of view
GS Selling licensed product is very important from Shoppers Stop point of view We have sold Om Shanti
Om merchandise in the past which was a huge success We had record sales and what we sold was like 3-
4 times more than what others could sell We are selling Vodafone Zoo Zoorsquos in our stores till date and our
customers simply love it Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable topical and stylish will sell We focus on licensed merchandise the right way without
cluttering them together We see a good pull and a good customer connect
VJ Your take on revenue sharing in malls vs mall rentals
GS Consumption is growing and a lot of malls are opening all over India Big brands and small time players
are jumping into the market to make their presence felt resulting in high rentals High rents have always
been a state of concern for every brand who wants to position themselves in the market Last year rent
rates were as high as 12-15 percent but now it has come down to 7-12 percent giving relief to many of us
But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body As we all know that it takes a minimum of 6-7 months for a mall to pick-up so there will be
fewer footfalls But as soon as business picks up things go well
VJ Where does Shoppers Stop prefer to be present -In a mall or a high street
GS I think both of them have their own places and both will continue to co exist akin to what we see as big
retail vs small retail There is enough space for both of them to grow
RETAIL INDUSTRY IN INDIACorporate Catalyst India A report on Indian Retail Industry1 OVERVIEW11 Background
The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
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The Indian retail industry is divided into organised and unorganised sectors Organisedretailing refers to trading activities undertaken by licensed retailers that is those who areregistered for sales tax income tax etc These include the corporate-backedhypermarkets and retail chains and also the privately owned large retail businessesUnorganised retailing on the other hand refers to the traditional formats of low-costretailing for example the local kirana shops owner manned general stores paanbeedishops convenience stores hand cart and pavement vendors etcIndiarsquos retail sector is wearing new clothes and with a three-year compounded annualgrowth rate of 4664 per cent retail is the fastest growing sector in the Indian economyTraditional markets are making way for new formats such as departmental storeshypermarkets supermarkets and specialty stores Western-style malls have begunappearing in metros and second-rung cities alike introducing the Indian consumer to anunparalleled shopping experienceThe Indian retail sector is highly fragmented with 97 per cent of its business being runby the unorganized retailers like the traditional family run stores and corner stores Theorganized retail however is at a very nascent stage though attempts are being made toincrease its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunityfor prospective new players The sector is the largest source of employment afteragriculture and has deep penetration into rural India generating more than 10 per centof Indiarsquos GDPComparative Penetration of OrganisedRetail(in )85 81 554030 20315 19 45 6070 8097USTaiwanMalaysiaThailandIndonesiaChinaIndia
Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
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Organized TraditionalSource Ernst ampYoung the Great Indian Retail Story 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank3rd by 2010 just behind US and China On one hand where markets in Asian giants likeChina are getting saturated the AT Kearneys 2006 Global Retail Development IndexCorporate Catalyst India A report on Indian Retail Industry(GRDI) for the second consecutive year Placed India the top retail investmentdestination among the 30 emerging markets across the worldOver the past few years the retail sales in India are hovering around 33-35 per cent ofGDP as compared to around 20 per cent in the US The table gives the picture of Indiarsquosretail trade as compared to the US and ChinaRetail Trade ndash India US and ChinaTrade (US$ billion) Employment ( ) Shops (million) Organized sector share ( )India 180-394 7 12 2-3China 360 12 27 20US 3800 126-16 153 80Source The Economist 2006The last few years witnessed immense growth by this sector the key drivers beingchanging consumer profile and demographics increase in the number of internationalbrands available in the Indian market economic implications of the Governmentincreasing urbanization credit availability improvement in the infrastructure increasinginvestments in technology and real estate building a world class shopping environmentfor the consumers In order to keep pace with the increasing demand there has been ahectic activity in terms of entry of international labels expansion plans and focus ontechnology operations and processesThis has lead to more complex relationships involving suppliers third party distributorsand retailers which can be dealt with the help of an efficient supply chain A propersupply chain will help meet the competition head-on manage stock availability supplierrelations new value-added services cost cutting and most importantly reduce thewastage levels in fresh produceLarge Indian players like Reliance Ambanis K Rahejas Bharti AirTel ITC and many
others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
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others are making significant investments in this sector leading to emergence of bigretailers who can bargain with suppliers to reap economies of scale Hence discountingis becoming an accepted practice Proper infrastructure is a pre-requisite in retailingwhich would help to modernize India and facilitate rapid economic growth This wouldhelp in efficient delivery of goods and value-added services to the consumer making ahigher contribution to the GDPInternational retailers see India as the last retailing frontier left as the Chinarsquos retail sectoris becoming saturated However the Indian Government restrictions on the FDI arecreating ripples among the international players like Walmart Tesco and many otherretail giants struggling to enter Indian markets As of now the Government has allowedonly 51 per cent FDI in the sector to lsquoone-brandrsquo shops like Nike Reebok etc Howeverother international players are taking alternative routes to enter the Indian retail marketindirectly via strategic licensing agreement franchisee agreement and cash and carrywholesale trading (since 100 per cent FDI is allowed in wholesale trading)Corporate Catalyst India A report on Indian Retail Industry12 Current StatusIndiarsquos retail industry accounts for 10 percent of its GDP and 8 percent of theemployment to reach $17 billion by 2010The Indian retail market is estimated at US$ 350 billion But organised retail is estimatedat only US$ 8 billion However the opportunity is huge-by 2010 organised retail isexpected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion asagainst its current growth level of 3 per cent which at present is estimated to be $ 6billion according to the Study undertaken by The Associated Chambers of Commerceand Industry of India (ASSOCHAM) Indian retailing is clearly at a tipping point Indiais currently the ninth largest retail market in the world And it is names of small townslike Dehradun Vijayawada Lucknow and Nasik that will power India up the rankings
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
soonOrganised retail in India has the potential to add over Rs 2000 billion (US$45 billion)business by the Year 2010 generating employment for some 25 million people in variousretail operations and over 10 million additional workforce in retail support activitiesincluding contract production amp processing supply chain amp logistics retail real estatedevelopment amp management etcIt is estimated that it will cross the $650-billion mark by 2011 with an already estimatedinvestment of around $421 billion slated for the next four yearsOrganized Retail Penetration across categories ()2212985321 1Footwear Clothing Books ampMusicJewelry ampAccessoryDurables HomeFurnishingMedicalServicesFood ampGroceryHealth ampBeauty
Source EampY the Great Indian Retail Story 2006As noticed in the figure above the Organized Retail Penetration (ORP) is the highest infootwear with 22 per cent followed by clothing Though food and grocery account forlargest share of retail spend by the consumer at about 76 per cent only 1 per cent of thismarket is in the organized sector However it has been estimated that this segmentwould multiply five times taking the share of the organized market to 30 percent in thecoming yearsCorporate Catalyst India A report on Indian Retail Industry13 Segment analysisThe structure of Indian retail is developing rapidly with shopping malls becomingincreasingly common in the large cities and development plans being projected at 150new shopping malls by 2008 However the traditional formats like hawkers grocers andtobacconist shops continue to co-exist with the modern formats of retailing Modern
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
retailing has helped the companies to increase the consumption of their products forexample Indian consumers would normally consume the rice sold at the nearby kiranasviz Kolam for daily use With the introduction of organized retail it has been noticedthat the sale of Basmati rice has gone up by four times than it was a few years back as asuperior quality rice (Basmati) is now available at almost the same price as the normalrice at a local kirana Thus the way a product is displayed and promoted influences itssales If the consumption continues to grow this way it can be said that the local marketwould go through a metamorphoses of a change and the local stores would soonbecome the things of the past or restricted to last minute unplanned buying131 Food and grocery retailThe food business in India is largely unorganized adding up to barely Rs400 billion withother large players adding another 50 per cent to that The All India food consumption isclose to Rs9000 billion with the total urban consumption being around Rs3300 billionThis means that aggregate revenues of large food players is currently only 5 per cent ofthe total Indian market and around 15-20 per cent of total urban food consumptionMost food is sold in the local lsquowetrsquo market vendors roadside push cart sellers or tinykirana stores According to McKinsey report the share of an Indian householdsspending on food is one of the highest in the world with 48 per cent of income beingspent on food and beverages132 Apparel retailThe ready-mades and western outfits are growing at 40-45 per cent annually as themarket teems up with international brands and new entrants entering this segmentcreating an Rs5 billion market for the premium grooming segment The past few yearshas seen the sector aligning itself with global trends with retailing companies likeShoppersrsquo stop and Crossroads entering the fray to entice the middle class However it is
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
estimated that this segment would grow to Rs 3 billion in the next three years133 Gems and Jewellery retailThe gems and jewellery market is the key emerging area accounting for a highproportion of retail spends India is the largest consumer of gold in the world with anestimated annual consumption of 1000 tonnes considering actual imports and recycledgold The market for jewellery is estimated as upwards of Rs 650 billion134 Pharmaceutical retailCorporate Catalyst India A report on Indian Retail IndustryThe pharma retailing is estimated at about Rs 300 billion with 15 per cent of the 51 lakhretail stores in India being chemists Pharma retailing will follow the trend of becomingmore organised and corporatised as is seen in other retailing formats (food apparel etc)A few corporates who have already forayed into this segment include Dr Morepen (withLifespring and soon to be launched Tango) Medicine Shoppe Apollo pharmacies 984from Global Healthline Pvt Ltd and the recently launched CRS Health from SAKIndustries In the south RPG grouprsquos Health amp Glow is already in this category thoughit is not a pure play pharma retailer but more in the health and beauty care business135 Music RetailThe size of the Indian music industry as per this Images-KSA Study is estimated atRs11 billion of which about 36 percent is consumed by the pirated market andorganized music retailing constitutes about 14 percent equivalent to Rs15 billion136 Book retailThe book industry is estimated at over Rs 30 billion out of which organized retailaccounts for only 7 per cent (at Rs210 billion) This segment is seen to be emergingwith text and curriculum books accounting to about 50 per cent of the total sales Thegifting habit in India is catching on fast with books enjoying a significant share thusexpecting this sector to grow by 15 per cent annually137 Consumer durables retailThe consumer durables market can be stratified into consumer electronics comprising of
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
TV sets audio systems VCD players and others and appliances like washing machinesmicrowave ovens air conditioners (ACs) The existing size of this sector stands at anestimated US$ 45 Billion with organized retailing being at 5 per cent14 Retailing FormatsModern retailing has entered India in form of sprawling malls and huge complexesoffering shopping entertainment leisure to the consumer as the retailers experimentwith a variety of formats from discount stores to supermarkets to hypermarkets tospecialty chainsCorporate Catalyst India A report on Indian Retail IndustrySource IT Retailing Are You In The Loop July 16 2006
However kiranas still continue to score over modern formats primarily due to theconvenience factor The organized segment typically comprises of a large number ofretailers greater enforcement of taxation mechanisms and better labour law monitoringsystem Its no longer about just stocking and selling but about efficient supply chainmanagement developing vendor relationship quality customer service efficientmerchandising and timely promotional campaigns The modern retail formats areencouraging development of well-established and efficient supply chains in each segmentensuring efficient movement of goods from farms to kitchens which will result in hugesavings for the farmers as well as for the nation The Government also stands to gainthrough more efficient collection of tax revenues Along with the modern retail formatsthe non-store retailing channels are also witnessing action with HLL initiating SangamDirect a direct to home service Network marketing has been growing quite fast and hasa few large players today Gas stations are seeing action in the form of conveniencestores ATMs food courts and pharmacies appearing in many outletsIn the coming years it can be said that the hypermarket route will emerge as the mostpreferred format for international retailers stepping into the country At present thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
catering to a population of half-a-million or more Estimates indicate that this sector willhave the potential to absorb many more hypermarkets in the next four to five yearsCorporate Catalyst India A report on Indian Retail IndustryList of retailers that have come with new formatsRetailer Current Format New Formats Experimenting withShopperrsquos Stop Department Store Quasi-mallEbony Department Store Quasi-mall smaller outlets adding food retailCrossword Large bookstore Corner shopsPiramyd Department Store Quasi-mall food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self-serviceVitan Supermarket Suburban discount storeFoodworld Food supermarket Hypermarket Foodworld expressGlobus Department Store Small fashion storesBombay Bazaar Aggregation of KiranasEfoodmart Aggregation of KiranasMetro Cash and CarryS Kumarrsquos Discount StoreTraditionally the small store (kirana) retailing has been one of the easiest ways togenerate self-employment as it requires minimum investments in terms of land labourand capital These stores are not affected by the modern retailing as it is still consideredvery convenient to shop In order to keep pace with the modern formats kiranas havenow started providing more value-added services like stocking ready to cook vegetablesand other fresh produce They also provide services like credit phone service homedelivery etcThe organized retailing has helped in promoting several niche categories such aspackaged fruit juices hair creams fabric bleaches shower gels depilatory products andconvenience and health foods which are generally not found in the local kirana storesLooking at the vast opportunity in this sector big players like Reliance and K Rahejashas announced its plans to become the countrys largest modern retainers by establishinga chain of stores across all major citiesApart from metro cities several small towns like Nagpur Nasik AhmedabadAurangabad Sholapur Kolhapur and Amravati as witnessing the expansion of modernretails Small towns in Maharashtra are emerging as retail hubs for large chain stores like
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Pantaloon Retail because many small cities like Nagpur have a student population lowerreal estate costs fewer power cuts and lower levels of attrition However retailers needto adjust their product mix for smaller cities as they tend to be more conservative thanthe metrosIn order for the market to grow in modern retail it is necessary that steps are taken forrewriting laws restructuring the tax regime accessing and developing new skills andinvesting significantly in India15 Merger and acquisition activityIndia witnessed a record number of MampA deals in the first half of 2006 which werecollectively worth US$ 256 billion A significant number of deals have being carried outCorporate Catalyst India A report on Indian Retail Industryin the Indian retail sector in the past few months in order to acquire a larger share in thegrowing domestic market and to compete against the prospective global and domesticplayers The table below shows some recent deals that have taken place in the Indianretail sectorYear Acquired JVCompanyTargetAcquirer Nature ofBusinessStake()Consideration(US$ million)2005 Liberty Shoes Future group Retail (Footwear) 51 32005 Indus ndash LeagueClothingFuture group Retail clothing 68 52005 Odyssey India Deccan ChronicleHoldingsLeisure retail chain(books music toys)100 142005 Landmark Tata Trent Books musicaccessories74 242006 BistroHospitalityTGI Fridayrsquos (asubsidiary ofCarisonRestaurantworldwide)
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Restaurant (Foodretail)25 NA2006 Indus LeagueClothing(Future groupcompany)Etam groupFranceLingerie andwomenrsquos wearretailing50 (JV) 8Source PricewaterhouseCoppers Asia-Pacific MampA bulletin Mid year 2006Corporate Catalyst India A report on Indian Retail Industry2 COMPETITION OVERVIEW21 Profile of the Major Players211 Pantaloon RetailPantaloon Retail (India) Limited is Indiarsquos leading retail company with presence acrossmultiple lines of businesses The company owns and manages multiple retail formats thatcater to a wide cross-section of the Indian society and is able to capture almost the entireconsumption basket of the Indian consumer Headquartered in Mumbai (Bombay) thecompany operates through 4 million square feet of retail space has over 140 stores across 32cities in India and employs over 14000 people The company registered a turnover of Rs2019 billion for FY 2005-06Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chainPantaloons in Kolkata In 2001 it launched Big Bazaar a hypermarket chain that combinesthe look and feel of Indian bazaars with aspects of modern retail like choice convenienceand hygieneThe grouprsquos subsidiary companies include Home Solutions Retail India Ltd PantaloonIndustries Ltd Galaxy Entertainment and Indus League Clothing The group also has jointventure companies with a number of partners including French retailer Etam group LeeCooper Manipal Healthcare Talwalkarrsquos Gini amp Jony and Liberty Shoes Planet Retail agroup company owns the franchisee of international brands like Marks amp SpencerDebenhams Next and Guess in India212 Lifestyle International
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Lifestyle International Holdings Ltdrsquos principal activity is the operation of lifestyledepartment store and retail outlets It focuses on high-end department store format As ofDecember 31 2005 Lifestyle International operated its retailing business through two brandnames SOGO and Jiuguang The SOGO Department Stores consists of the Companysflagship department store SOGO CWB in Causeway Bay Hong Kong and the Tsimshatsuistore which features a slightly different format that targets younger group of customers TheJiuguang Department Store which is located in Shanghai has a similar business format asthat of the SOGO store During the year ended December 31 2005 it launched SOGOCLUB a lifestyle service center Some of the Companyrsquos subsidiaries include Asia KineticLimited Congenial Company Limited Eastlord Development Limited Everwin WorldwideLimited and Fine Shine Limited213 RPG RetailRPG Enterprises is one of Indiarsquos largest business conglomerates with a turnover ofUS$ 165 billion (Rs 7472 crore) and assets worth US$ 18 billion Since its inception in 1979RPG Enterprises has been one of the fastest growing groups in India with more than 20companies operating successfully in 7 business sectors Retail IT amp CommunicationsEntertainment Power Transmission Tyres and Life SciencesCorporate Catalyst India A report on Indian Retail IndustrySpencerrsquos retail is the largest supermarket chain in India Spencerrsquos retail offers the completegamut of products amp durables ranging from bread to bed covers from toothpaste totelevision Spencerrsquos today is operating across 80 stores spread across 20 cities in the countrywith a retail trading area of more than half a million square feet and rapidly growingSpencerrsquos Retail is located in various parts of India like Chennai Hyderabad VizagBangalore Mumbai Aurangabad Pune Ghaziabad Faridabad Delhi Cochin Trivandrumand many more to come by this financial year214 Shopperrsquos StopThe foundation of Shoppersrsquo Stop was laid on October 27 1991 by the K Raheja Corp
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
group of companies From its inception Shoppersrsquo Stop has progressed from being a singlebrand shop to becoming a Fashion amp Lifestyle store for the familyShoppersrsquo Stop is the only retailer from India to become a member of the prestigiousIntercontinental Group of Departmental Stores (IGDS) The IGDS consists of 29experienced retailers from all over the world which include established stores like Selfridges(England) Karstadt (Germany) Shanghai No 1 (China) Matahari (Indonesia) Takashimaya(Japan) C K Tang (Singapore) Manor (Switzerland) and Lamcy Plaza (Dubai) Thismembership is restricted to one member organization per countryregion215 Trent (Tata)Trent (Tata) was established in 1998 Trent operates some of the nationrsquos largest and fastestgrowing retail store chains A beginning was made in 1998 with Westside a lifestyle retailchain which was followed up in 2004 with Star India Bazaar a hypermarket with a largeassortment of products at the lowest prices In 2005 it acquired Landmark Indiarsquos largestbook and music retailerIn a recently signed deal Trent has agreed to anchor 12 malls set up by DLF Universal Ltdacross the country at its Westside Landmark and Star India Bazaar outlets This amounts toabout 27 locations totaling to about a million square feet of space216 Vivek LtdVivek Limited is the largest Consumer Electronics amp Home Appliances retail chain in Indiawith 14 world class showrooms in Chennai Bangalore and Salem covering a retail spacearea of over 100000 sq ft and a turnover of over Rs 1 billion (US $ 23 Million) Its brandVIVEKS is now a household name The grouprsquos turnover comprising of interests indistribution of consumer products finance safe deposit lockers property development andreal estate is about 2 Billions (US $ 46 Million)Vivek Ltd proposes to expand its operations in Karnataka and also open outlets in AndhraPradesh The company is working on a plan to open three retail outlets in Mysore Hubli andCorporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Mangalore in Karnataka and in Hyderabad Vijayawada and Visakhapatnam in AndhraPradesh Viveks currently has 22 showrooms in 5 citiesCorporate Catalyst India A report on Indian Retail Industry3 INVESTMENT POLICY AND INITIATIVES31 FDI Policy in the Retail SectorIndia has kept the retail sector largely closed to outsiders to safeguard the livelihood ofnearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrandretail with prior Government permission FDI is also allowed in the wholesalebusiness Single-brand retailers such as Louis Vuitton Fendi LLadro Nike and Toyota canoperate now on their own Metro is already operating through the cash-and-carry wholesalemodeThe policy makers continue to explore areas where FDI can be invited without hurting theinterest of local retail community Government is considering opening up of the retailtrading for select sectors such as electronic goods stationery sports goods and buildingequipmentForeign direct investment (FDI) in retail space specialized goods retailing like sports goodselectronics and stationery is also being contemplated The Government has to walk atightrope to ensure a `level playing field for everyoneThe policy of permitting 51 per cent FDI in single-brand product retailing has led to theentry of only a few global brands such as Nike (footwear) Louis Vuitton (shoes travelaccessories watches ties textiles ready-to wear) Lladro (porcelain goods) Fendi (luxuryproducts) Damro (knock-down furniture) Argenterie Greggio (silverware cutlerytraditional home accessories and gift items) and Toyota (retail trading of cars) into retailtrading A 12-billion euro French luxury industry is also eyeing the domestic luxury segmentto make a presence through retailing directly32 Business models for entry in Indian marketsDue to the FDI restrictions the international players are looking for alternative avenues toenter the Indian markets However FDI restrictions in retailing have not deterred prominentinternational players from setting up shops in India
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
In recent developments the Australian retail giant Woolworth Ltd made in innovative entryin Indiarsquos retail space with Indiarsquos Tata group The Tata group has floated Infiniti Retail Ltdin venture with which will sell consumer goods and electronics across the country InfinitiRetail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusionof Rs 4 billion This Tata retail venture joined hands with Australian retail giant WoolworthsLtd which currently operates more than 2000 stores in 12 different formatsWhile Infiniti will own and run retail operations in India Woolworths which has attainednotable success in selling electronics and consumer goods through its Dick SmithElectronics chain will provide technical support and strategic sourcing facilities from itsglobal networkCorporate Catalyst India A report on Indian Retail IndustryAt present entry into Indiarsquos retail sector can be done through three different routes Thechart below shows the current formats permitted by the Government of India for theinternational playersCurrent entry options for foreign playersFranchise agreements bull Most widely used entry route by multinational retailersbull Fast food retailer Dominorsquos entered India through masterfranchise root while Pizza Hut entered through regionalfranchiseeCash and Carrywholesale tradingbull 100 FDI is allowed in wholesale trading which involvesbuilding of a large distribution infrastructure to assist localmanufacturersbull The wholesaler deals only with smaller retailers and notconsumersbull Metro AG of Germany was the first significant globalplayer to enter India through this routeStrategic licensingagreementsbull Foreign company enters into a licensing agreement with adomestic retailerbull Mango the Spanisn apparel brand has entered Indiathrough this route with an agreement with PiramydMumbaibull SPAR entered into a similar agreement with RadhakrishnaFoodlands Pvt LtdCorporate Catalyst India A report on Indian Retail Industry
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
4 OPPORTUNITIES AND CHALLENGES41 Investment Opportunities in the Retail SectorAT Kearneyrsquos study on global retailing trends found that India is the least competitive aswell as least saturated of all major global markets This implies that there are significantlylow entry barriers for players trying to setup base in India in terms of the competitivelandscape The report further stated that global retailers such as Walmart CarrefourTesco and Casino would take advantage of the more favourable FDI rules that are likelyin India and enter the country through partnerships with local retailers Other retailerssuch as Marks amp Spencer and the Benetton Group who operate through a franchiseemodel would most likely switch to a hybrid ownership structureA good talent pool unlimited opportunities huge markets and availability of quality rawmaterials at cheaper costs is expected to make India overtake the worlds best retaileconomies by 2042 according to industry playersThe retail industry in India according to experts will be a major employment generatorin the future Currently the market share of organised modern retail is just over 4 percent of the total retail industry thereby leaving a huge untapped opportunityThe sector is expected to see an investment of over $30 billion within the next 4-5 yearscatapulting modern retail in the country to $175-200 billion by 2016 according toTechnopak estimatesThe Potential of the Indian Retail SectorThe high growth projected in domestic retail demand will be fuelled by1048766 The migration of population to higher income segments with increasing per capitaincomes1048766 An increase in urbanisation1048766 Changing consumer attitudes especially the increasing use of credit cards1048766 The growth of the population in the 20 to 49 years age bandThere is retail opportunity in most product categories and for all types of formats1048766 Food and Grocery The largest category largely unorganised today1048766 Home Improvement and Consumer Durables Over 20 per cent pa CAGR estimatedin the next 10 years1048766 Apparel and Eating Out 13 per cent pa CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
Opportunities for investment in supply chain infrastructure Cold chain and logisticsIndia also has significant potential to emerge as a sourcing base for a wide variety of goods forinternational retail companies1048766 Many international retailers including Wal-Mart GAP JC Penney etc are alreadyprocuring from IndiaCorporate Catalyst India A report on Indian Retail IndustryOf the total organised retail market of Rs 550 billion the business of fashion accountsfor Rs 30080 billion which translates into nearly 55 per cent of the organised retailsegment in the countryTotal fashion sector was estimated at Rs 1914 billion and forms about 15 per cent of thecountrys retail market of Rs 12000 billionCommanding such a large chunk of the organised retail business in India fashionretailing has indeed been responsible for single-handedly driving the business of retail inIndia42 Challenges in RetailingThe industry is facing a severe shortage of talented professionals especially at themiddle-management levelMost Indian retail players are under serious pressure to make their supply chains moreefficient in order to deliver the levels of quality and service that consumers aredemanding Long intermediation chains would increase the costs by 15 per centLack of adequate infrastructure with respect to roads electricity cold chains and portshas further led to the impediment of a pan-India network of suppliers Due to theseconstraints retail chains have to resort to multiple vendors for their requirementsthereby raising costs and pricesThe available talent pool does not back retail sector as the sector has only recentlyemerged from its nascent phase Further retailing is yet to become a preferred careeroption for most of Indiarsquos educated class that has chosen sectors like IT BPO andfinancial servicesEven though the Government is attempting to implement a uniform value-added tax
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-
across states the system is currently plagued with differential tax rates for various statesleading to increased costs and complexities in establishing an effective distributionnetworkStringent labor laws govern the number of hours worked and minimum wages to be paidleading to limited flexibility of operations and employment of part-time employeesFurther multiple clearances are required by the same company for opening new outletsadding to the costs incurred and time taken to expand presence in the countryThe retail sector does not have lsquoindustryrsquo status yet making it difficult for retailers to raisefinance from banks to fund their expansion plansGovernment restrictions on the FDI are leading to an absence of foreign playersresulting into limited exposure to best practicesCorporate Catalyst India A report on Indian Retail IndustryNon-availability of Government land and zonal restrictions has made it difficult to find agood real estate in terms of location and size Also lack of clear ownership titles and high
stamp duty has resulted in disorganized nature of transactions
- About Henkel
-
- Code of Conduct for Directors and Senior Management Personnel
- The following principles guide their conduct
- 1 Honest and Integrity
- 2 Confidentiality of Information
- 3 Personal Transactions and no misuse of information position and property
- 4 Disclosure of Interests
- 5 Compliance with the Law
- 6 Lawful and Ethical Behaviour
- COMPLIANCE PROCEDURES
- R G CHANDRAMOGAN Chairman and Managing Director
- Basics
- Skills
- Background
- Prospects
- Earnings
-