India represents an economic opportunity on a massive scale, both as a global base and as a domestic market. Indian Retail sector consists of small family-owned stores, located in residential areas, with a shop floor of less than 500 square feet. At present the organized sector accounts for only 2 to 4% of the total market although this is expected to rise by 20 to 25% on YOY basis.

Retail growth in the coming five years is expected to be stronger than GDP growth, driven by changing lifestyles and by strong income growth, which in turn will be supported by favorable demographic patterns and the extent to which organized retailers succeed in reaching lower down the income scale to reach potential consumers towards the bottom of the consumer pyramid. Growing consumer credit will also help in boosting consumer demand.

The structure of retailing will also develop rapidly. Shopping malls are becoming increasingly common in large cities, and announced development plans project at least 150 new shopping malls by 2008. The number of department stores is growing much faster than overall retail, at an annual 24%. Supermarkets have been taking an increasing share of general food and grocery trade over the last two decades.

However, distribution continues to improve, but it still remains a major inefficiency. Poor quality of infrastructure, coupled with poor quality of the distribution sector, results in logistics costs that are very high as a proportion of GDP, and inventories, which have to be maintained at an unusually high level. Distribution and marketing is a huge cost in Indian consumer markets. It’s a lot easier to cut manufacturing costs than it is to cut distribution and marketing costs.

Also, government has relaxed regulatory controls on foreign direct investment (FDI) considerably in recent years, while retailing currently remains closed to FDI. However, the Indian government has indicated in 2005 that liberalization of direct investment in retailing is under active consideration. It has allowed 51% FDI in “single brand” retail.

The next cycle of change in Indian consumer markets will be the arrival of foreign players in consumer retailing. Although FDI remains highly restricted in retailing, most companies believe that will not be for long. Indian companies know Indian markets better, but foreign players will come in and challenge the locals by sheer cash power, the power to drive down prices. That will be the coming struggle.

This report discusses the scenario of organized retail industry in India and the opportunities available for companies based on key statistics. We have answered Key questions like:

§ What is the market size and scope of the Organized Indian retail industry?
§ What are the Political, Social, Economic & Technological factors influencing the Indian Retail Industry?
§ What and where are the growth prospects and issues related to the industry?
§ What are the factors driving growth in this sector?
§ What is the size of organized market segment wise & its growth prospects?
§ Who are the major players of Indian Retail Industry, their presence and strategies being used by them to improve profitability?

We have attempted to answer these questions, through the RNCOS Industry Information Service on Indian Organized Retail Industry. Our analysis and outlook of Organized Retail Industry would serve as a key input for your business decisions and performance evaluation.

1. Economic Overview
2. FDI Regulations & Government Policies
3. Demographic Profile & Consumer Behavior
3.1 India’s Demographic Advantage
3.2 Consumer Behavior
4. Indian Retail Market — An Overview
4.1 Structure Of Organized Retail Industry (2003-2004)
4.2 Modern Retail Formats In India
4.2.1 Hypermarkets
4.2.2 Supermarkets
4.2.3 Discount Stores
4.2.4 Convenience Stores
4.2.5 Department Stores
4.2.6 Specialty Stores
4.2.7 E-Tailing
4.2.8 Malls
5. Organized Market Size And Growth, By Segments
5.1 Fastest Growing Retail Segments In India
5.1.1 Food, Beverage And Consumer Goods
5.1.2 Apparel And Footwear
5.1.3 Consumer Durables
5.1.4 Heath And Beauty Products
5.1.5 Home Furnishing And Household Goods
5.1.6 Leisure And Personal Goods (Music & Books)
6. Mergers & Acquisition Activity
7. Opportunities & Challenges
8. Pest Analysis
9. Emerging Trends & Forecast
9.1 Organized Retailing By 2010
10. Recent Developments & Issues
11. Company Profiles
11.1 Pantaloon
11.1.1 Business Profile
11.1.2 Strategic Overview
11.1.3 Financial Overview
11.1.4 Key Management Profiles And Officers
11.1.5 Stock Performance
11.2 Trent Limited
11.2.1 Business Profile
11.2.2 Strategic Overview
11.2.3 Financial Overview
11.2.4 Key Management Profiles And Officers
11.3 Shoppers’ Stop Ltd.
11.3.1 Business Profile
11.3.2 Strategic Overview
11.3.3 Financial Overview
11.3.4 Stock Performance
11.3.5 Key Management Profiles And Officers
11.4 Archies
11.4.1 Business Profile
11.4.2 Strategic Overview
11.4.3 Financial Overview
11.4.4 Stock Performance
11.5 Bata India Ltd.
11.5.1 Business Profile
11.5.2 Recent Developments
11.5.3 Financial Overview
11.5.4 Stock Performance
11.5.5 Key Management Profiles And Officers
11.6 Liberty Shoes Ltd.
11.6.1 Business Profile
11.6.2 Strategic Overview
11.6.3 Financial Overview
11.6.4 Stock Performance
11.6.5 Key Management Profiles And Officers
11.7 Titan Industries
11.7.1 Business Profile
11.7.2 Strategic Overview
11.7.3 Financial Overview
11.7.4 Stock Performance
11.7.5 Key Management Profiles And Officers
12 Appendices

List Of Figures:
Figure 1-1: Indian FDI Drivers (2004))
Figure 3-1: Percentage Of Population Aged 65 And Older In 2000, 2025 And 2050
Figure 3-2: Mapping Of India’s Income Classes
Figure 3-3: Composition Of Average Household Consumption In 2002-03
Figure 4-1: Percentage Retail Growth Across Countries In Asia
Figure 4-2: Structure Of Indian Retail Industry
Figure 4-3: Organized Retail As A Percentage Of FMCG Sales (By City)
Figure 4-4: Fastest Growing Formats In India (% Of Respondents)
Figure 4-5: Indian Mall Scenario Area Million Sq Ft (2001-2005)
Figure 4-6: Project Breakup Of Mall Spaces By 2007 End (City Wise)
Figure 4-7: Project Breakup Of Mall Spaces By 2007 End (Region Wise)
Figure 5-1: Break Of Products Sold In Organized Retail (2005)
Figure 5-2: Survey Results Of Fastest Growing Retail Segments In India
Figure 5-3: Market Share: Urban Vs. Rural Regions (2005)
Figure 5-4: Forecast Of Consumer Goods In Retail Sales Growth (2004-2009)
Figure 5-5: Total Retail Sales, 1998-2008(E) By Sectors (In Billion Dollars)
Figure 5-6: India Apparel Retail Sales Segmentation, By Product Type: % Share (2005)
Figure 5-7: Home Furnishing Retail Value (In Percentage): 2001-2005
Figure 9-1: Organized Retail Forecast (2010)
Figure 11-1: Pantaloon Stock Chart
Figure 11-2: Shoppers’ Stop Stock Chart
Figure 11-3: Archies Ltd. Stock Chart
Figure 11-4: Bata India Ltd. Stock Chart
Figure 11-5: Liberty Shoes Ltd. Stock Chart
Figure 11-6: Titan Industries Ltd. Stock Chart

List Of Tables:
Table 1-1: Macroeconomic Indicators 1991V/S 2004
Table 1-2: GDP & CPI (2001-07)
Table 2-1: Government Policy And Issues Checklist For Private Sector Development
Table 3-1: Urban Rural Split
Table 4-1: Retail Format Break-Up In India (Organized Retail Outlets)
Table 4-2: Major Hypermarket Players (By Brand, No. Of Stores And Sales FY05)
Table 4-3: Major Supermarket Players In India (By Brand, No. Of Stores And Sales FY05)
Table 4-4: Major Discount Store Players In India (By Brand, No. Of Stores And Sales FY05)
Table 4-5: Major C-Store Players In India (By Brand, No. Of Stores)
Table 4-6: Major Department Store Players In India (By Brand, No. Of Stores And Sales FY05, Future Plans)
Table 4-7: Major Specialty Store Players In India (By Brand, No. Of Stores, FY05)
Table 4-8: Operational Malls/Shopping Centre Updated 2005
Table 5-1: Growth Of Organized Retail (Total Revenue, Percentage Of Total Retail Market 1999-2005)
Table 5-2: Major Product Categories In Organized Retail Sales (2004-2007)
Table 5-3: Growth Estimates In Food & Grocery Segment (2005-2009)
Table 5-4: India Body Care Value Forecast, 2003-2008 (US$ M)
Table 6-1: M & A Activity In Retail Industry (2004-2005)
Table 11-1: Pantaloon - Brief Financial Summary
Table 11-2: Pantaloon – Key Management Profiles
Table 11-3: Trent Limited - Brief Financial Summary
Table 11-4: Trent Limited – Key Management Profiles
Table 11-5: Shoppers’ Stop Ltd. - Brief Financial Summary
Table 11-6: Shoppers’ Stop Ltd. - Balance Sheet Brief
Table 11-7: Shoppers’ Stop Ltd. – Key Management Profiles
Table 11-8: Archies - Brief Financial Summary
Table 11-9: Bata India Ltd. - Brief Financial Summary
Table 11-10: Bata India Ltd. – Key Management Profiles
Table 11-11: Liberty Shoes Ltd. - Brief Financial Summary
Table 11-12: Liberty Shoes Ltd. – Key Management Profiles
Table 11-13: Titan Industries - Brief Financial Summary
Table 11-14: Titan Industries – Key Management Profiles
Table 12-1: Break-Up Of Total Monthly Per Capita Consumer Expenditure (MPCE) By Broad Groups Of Items For Households In Different MPCE Classes, Rural Sector
Table 12-2: Per 1000 Distribution Of Households And Persons By MPCE Class, And Average Number Per 1000 Households Of Adults And Children By Sex In Different MPCE Classes
Table 12-3: Average Expenditure (Rs) Per Person Per 30 Days On Groups Of Items Of Consumption For Rural Areas Of Selected States/UTS