Kishore Biyani

Project on Case Study on Kishore Biyani
INTRODUCTION
Kishore Biyani (Rajasthani; born 9 August 1961) is an entrepreneur who has been credited
with changing the face of modern retailing in India, with the introduction of innovation
designed discount hyper markets and forming the concept of destination malls.
His company, Future Group operates 3 million square feet of retail space spread across 25
cities in India. The most notable formats being Big Bazaar, Home Town, Pantaloons and
Central chain of shops. He has been called India's own Sam Walton.
Mr. Kishore Biyani is the Chief Executive Officer at Future Group. He is also the Chairman
and Managing Director at Pantaloon Retail (India) Limited. Mr. Biyani is a Managing Partner
and Chairman at Indivision Capital Fund. He is the Chairman of Future Capital Holdings.
Biography for Kishore Biyani

Name: Kishore Biyani
Company: Future Group
Nationality: India
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the
Group Chief Executive Officer of Future Group. He has led Pantaloon Retails
emergence as the Indias leading retailer operating multiple retail formats that now
cater to almost the consumption basket of a large section of Indian consumers.
Kishore Biyani led the companys foray into organised retail with the opening up of
the Pantaloons family store in 1997. This was followed in 2001 with the launch of Big
Bazaar, a uniquely Indian hypermarket format that democratized shopping in India. It
blends the look, touch and feel of Indian bazaars with aspects of modern retail like
choice, convenience and quality. This was followed by a number of other formats
including Food Bazaar, Central and Home Town.
The year, 2006 marked the evolution of Future Group, that brought together the
multiple initiatives taken by group companies in the areas of Retail, Brands, Space,
Capital, Logistics and Media.
Page 1
Kishore Biyani advocates Indianness as the core value driving the group. The
groups corporate credo is Rewrite Rules, Retain Values.
Page 2

It Happened in India - The Story of Pantaloons, Big Bazaar, Central, and
the great Indian consumer
It Happened in India - Kishore Biyani with Dipayan Baishya .Finally a business book
from India! And no, it did not come from the Tatas or Birlas or Ambanis. It has come from
the reasonably unlikely quarters of Biyanis. Actually it is just one Biyani that is famous yet:
Kishore Biyani, the first generation business man who has given retail in India the shape it is
in. Sure we dont know how are Pantaloons and Big Bazars and other ventures of Kishore
Biyani going to shape up in the wake of Reliance Retail and foreign players. And neither did
Kishore Biyani set up the first mall in the country. But he could still be heralded as the Father
of Indian Retail simply because he has, as Malcolm Gladwell would say, Tipped the retail
industry in India. He has taken malls from the domain of the elitist to the masses. And even
though the business of Kishore Biyani is minuscule compared to Walmart or Tatas, he has
achieved a tremendous amount, enough to warrant an autobiography of hisbusinesslife.
And true to his style, this book by Kishore Biyani was meant for the masses. It was released
in paperback, and priced at Rs. 99. Which is the least I have paid for a business book ever!
However, a good business man, and a thriving business operation, does not necessarily a
good business book make! That is exactly what has happened here. The book oversimplifies
the whole business a bit too much for the reader to grasp the complexities of the business
environment, that too, in a sector which is otherwise dominated by the unorganized players.
The best business books tend to chart the journey of everyone involved, capturing sufficient
detail to convey the challenges of the business without over doing it which would bore the
reader. Its a fine line to tread. And this book is on the simpler side of the line. It misses that
investigative journalistic touch and the business details. Perhaps if an independent author had
written a book instead of Kishore Biyani himself, assisted by a writer, he might have done a
better job. Having said that, the book does give glimpses of the Indian Retail scenario. And
even the brief insights are quite a delight to read. The growth of the business itself, and the
thoughts of Kishore Biyani at every juncture and inflection point for his company are quite
well narrated. The anecdotes and comments by people who have worked with Kishore
Biyani umm well there are too many of them and most are generic praises that anyone
could shower on anyone. But then, some of them highlight specific facets of Kishore Biyanis
business style and acumen, and they cover up for all the other write-ups which are plain
Page 3

flattery. The book is not really written for the B-school audiences. It is meant to fire up that
entrepreneurial spark in the people who are looking for a hero to emulate. And yes, Kishore
Biyani is a source of bucketfuls of inspiration for such young guns. This book will be more
than vindicated if it manages to produce even a single Kishore Biyani in this country of over
1 billion people.
Biyanis Kingdom
Pantaloons
Big Bazaar
Food Bazaar
Future Bazaar
Brand Factory
Central
Planet Sport
Lee Cooper
Home Town
E zone
Furniture Bazaar
Shoe Factory
Depot
Page 4

MEET INDIA'S KING OF RETAIL
MR. KISHORE BIYANI
Unlike most people, Kishore Biyani makes no bones

about his simplicity. He's the man you're most likely to
ignore at the Pantaloon or Big Bazaar store, as he stands in a corner observing the way you
shop. But make no mistake; what he may lack in sartorial style, he more than makes up
through his observation powers.
You'll never catch him in a tie and jacket. He isn't a stickler for large cars, and has just
graduated from driving a Honda City to a Honda Accord, though he's just as content driving
around in a junior manager's Maruti 800. He is a strict vegetarian, and is currently off cheese
and fried foods, but will otherwise eat anything that is green. Pantaloon's Kishore Biyani has
become India's largest retailer, but still has several aces up his John Miller shirtsleeves. In
India's chaotic markets, Kishore Biyani is the unchallenged king of retail. He has the knack of
catching rivals off-guard and striking where it hurts most. Biyani's victory isn't unexpected.
India's own Sam Walton (the legendary promoter of Walmart) is quick to seize any advantage.
Which is why the denim manufacturer who quit the trade because "it wasn't creative enough"
commands over 1.3 million sq ft of retail space.
But even size hasn't made a difference to Biyani's vaulting ambitions and he's on an even
faster trajectory of growth. He's booked over 4.5 million sq ft of space across the country, and
will utilise 3 million sq ft by this year's end in 23 Indian cities.
He will invest over Rs 200 crore (Rs 2 billion) to make this dream a reality. Says R S Roy,
editorial director of the magazine Retail, which tracks the industry closely: "Mall developers
have him in mind before they start constructing. His presence ensures footfalls and a
premium for the mall." Two years ago, no one took Kishore Biyani seriously. His company,
Pantaloon Retail, was seen as a one-man show. Biyani himself was regarded as unpredictable,
and not a long-term bet. Today, he is the biggest retailer in India. In two years, Kishore
Biyani has bounced back to become India's largest retailer.
Page 5
MILESTONES TO SUCCESS:
1987 - Company incorporated as Manz Wear Private Limited. Launch of Pantaloons
trouser, Indias first formal trouser brand.
1991 - Launch of BARE, the Indian jeans brand.
1992 - Initial public offer (IPO) was made in the month of May.
1994 - The Pantaloon Shoppe exclusive menswear store in franchisee format
launched across the nation. The company starts the distribution of branded garments
through multi-brand retail outlets across the nation.
1995 - John Miller Formal shirt brand launched.
1997 - Pantaloons Indias family store launched in Kolkata.
2001 - Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain
launched.
2002 - Food Bazaar, the supermarket chain is launched.
2004 - Central Shop, Eat, Celebrate in the Heart of Our City - Indias first
seamless mall is launched in Bangalore.
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2005 Fashion Station the popular fashion chain is launched aLL a little larger
exclusive stores for plus-size individuals is launched.
2006 - Future Capital Holdings, the companys financial arm launches real estate
funds Kshitij and Horizon and private equity fund Indivision. Plans forays into
insurance and consumer credit.
Multiple retail formats including Collection i,
Furniture Bazaar, Shoe Factory, EZone, Depot and futurebazaar.com are launched
across the nation. Group enters into joint venture agreements with ETAM Group and
Generali
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1. HISTORY
Kishore Biyani is the person whose talent is transforming India Retail and Indian Economy
with his vision and power to grow. He is the person, who stood up and is going well to break
the parameters of Indian Retail. He is known by several names: the king of retail the
unstoppable Indian the man who saw the future.
Kishore Biyani belongs to a trading family from Rajasthan settled in Mumbai for more than
60 years now. He was never interested in studies but did complete his commerce graduation
and always had ambition of making it big in business. He didnt join the family trading
business but rather than tried out different things on his own, like readymade garments,
textile production, creating brands before he ventured in retail business of selling garments.
he is true visionary when he started selling readymade garments when nobody preferred
ready-to-wear shirts or trousers.
Kishore Biyani is an Indian businessman. He is chief executive officer (CEO) of Future
Group, and Managing Director of Pantaloon Retail. Biyani's Future Group has over 17
million square feet of retail space in 90 cities and 60 rural locations. He managed to raise
$170 million by taking venture capital arm Future Ventures public in March 2011. Biyani is
married to Sangita Biyani and they have 2 children and are based in Mumbai. His older
daughter Ashni is a director of Future Ideas, group's innovation and incubation cell.
Kishore is the co-author of the book "It happened in India". It is the story of Pantaloons, Big
Bazaar, Central, and the Great Indian Consumer, co-authored with Dipayan Baishya. The
book has sold some 100,000 copies, more than any other business book published in India so
far.
WHY DID YOU CHOOSE THAT PERSONALITY?
Kishore Biyani isnt quite the poster boy of Indias organized retail industry. He lives its
periphery ever willing to take extraordinary bets. His peers dismiss him as compulsive risk
taker. He was first who dared to try out the hypermarket model. During his initial struggle
period, the press fed up with his recalcitrance to meet or talk, largely ignores him. He is
seldom invited for retail seminars. But Biyani didnt care. He was quite content being
outsider who at the end built up his Rs220 crore business in nascent Indian retail sector.
Page 8

Born in a middle class trading family Kishore Biyani started his career selling stonewash
fabric to small shops in Mumbai. Years later, with the launch of Pantaloons, Big Bazaar, Food
Bazaar, Central and many more retail formats, he redefined the retailing business in INDIA.
India's retail czar, Kishore Biyani, replaced conventional wisdom with "guts and instincts" to
create Future Group, a $1 billion company that includes Pantaloon Retail, a department
store group; Big Bazaar, the company's name for hypermarkets; Food Bazaar supermarkets,
and Central Mall, a more upscale aggregation of merchandise. Known for his insights into
Indian consumer behavior, Biyani also represents an enigma to the country's emerging retail
players, both domestic and foreign.
He trusted his own ability so strongly from day one that he never needed to be on the side of
established hero. Like while playing game of cricket, he was ever willing to take up the
opponents challenge in spite of a weak team. Out of his own confidence he encouraged his
team members to give it their best, even if they were destined to lose the match. And he did
everything to win the match. While in college he organized Disco Dandiya in his own locality
first of its kind in south Mumbai. It was first popular trend that he picked on early and was
able to capitalize on it.
So as one grows and starts to learn and understand life, he starts to question as well. At a very
early stage, one starts creating mental models to interpret various observations. At that point
if one finds that what he has learnt on his own is different from what is being practiced in
reality. He tries to distinguish the right from the wrong. He soon starts to seek answer to
everything and then life transforms. So attitude of questioning is very important. Until one
questions the establish way of doing things, one wont be able to come up with something
new.
Thus he left his family business and started his own journey- entrepreneurial journey..
He kept looking for beachheads to realize his dreams. He tried multiple things that could be
ideal for new India that was emerging.
DREAM OF THE LEADER
His dream was to make a place on a simple idea: Rewrite rules, retain values. His
fundamental belief created a new kind of marketplace, forever transforming Indian retail.
Today his core values continue to guide how he does business and improve the quality of life
of the people they serve.
Page 9

At his Future Group they are committed to being a catalyst of positive change in the
communities, societies, and business sectors in which they operate. They envision Indias
transformation into the legendary 'Sone Ki Chidiya' (golden bird), taking wings once again
to reach greater heights.
He takes pride in being Indian. Their belief in inclusiveness for long-term sustainable growth
and economic prosperity evokes trust among consumers, employees, suppliers, partners,
shareholders and the community.
He even mentioned in his interview with FORBES INDIA... I believe that what
differentiates us from animals is imagination and fear. One of my own observations on life is
that 7 out of 10 thoughts an average person has is negative. So the big question becomes
How do we use reduce our fears and increase our imagination? I dream of being able to
reduce the fear quotient and convert negative thoughts through imagination.
We are a nation that doesnt believe in ourselves as much as we should. Even with our rich
history and knowledge, we have yet to produce strong thought leaders out of India. If we are
to prosper and grow, we need to plan future scenarios that not only look at economic indices
but also take into account the measures of happiness, culture, and values. This is a long-term
approach to planning the future of India.
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Page 10
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STAGE OF BUSINESS (CURRENT STAGE)
Every day, Future Group brings multiple products, opportunities, and services to millions of
customers in India. Through over 17 million square feet of retail space, we serve customers in
93 cities and 60 rural locations across the country. Most of all, we help India shop, save and
realize dreams and aspirations to live a better quality of life every day.
Future Group understands the soul of Indian consumers. As one of Indias retail pioneers with
multiple retail formats, we connect a diverse and passionate community of Indian buyers,
sellers, and businesses.
The collective impact on
business is staggering: Around
300
million
customers
walk into our stores each year and
choose products
and services supplied by
over
30,000 small, medium and
large
entrepreneurs
and
manufacturers from across India. And this number
is set to grow.
Future Group employs 35,000 people directly from
section of our society. We
every
source
our supplies from enterprises across the country, creating fresh

employment, impacting livelihoods, empowering local communities, and fostering mutual
growth.
We believe in the Indian dream and have aligned our business practices to our larger
objective of being a premier catalyst in Indias consumption-led growth story. Working
towards this end, we are ushering positive socio-economic changes in communities to help
the Indian dream fly high and the Sone Ki Chidiya soars once again. This approach remains
embedded in our ethos even as we rapidly expand our footprints deeper into India.
USINESSES:
Page 11
SERVICES:
While retail forms the core business activity of Future Group, group subsidiaries are present
in leisure and entertainment, brand development, retail real estate development, retail media
and logistics. Some of our other businesses include, mobile telephony brand, T24, operated in
association with Tata Teleservices, a supply chain and logistics Infrastructure Company, and a
company engaged in providing educational and training services through three Future
University campuses in Ahmedabad, Bangalore and Kolkata.
FINANCE:
In the financial space, our group companies offer consumer finance and insurance to
customers, as well as corporate loans and equity investments to companies engaged in
consumer businesses.
KEY GROUP COMPANIES:
RSF INE RTAAV NILICC E S

Future Group comprises operating businesses in three sectors: Retail, Allied Services, and
Finance. Leveraging a strong understanding and knowledge of Indian consumer preferences,
habits and aspirations, we have built some of the most respected retail brands in the country.
Page 12

Our retail business across the value and lifestyle segments focuses on 4 key consumption
verticals: food, fashion, general merchandise, and home.
VISION ARTICULATION
BUILT FROM SCRATCH:

Kishore Biyani isnt quite the poster boy of Indias organized retail industry. He lives its
periphery ever willing to take extraordinary bets. His peers dismiss him as compulsive risk
taker. He was first who dared to try out the hypermarket model. During his initial struggle
period, the press fed up with his recalcitrance to meet or talk, largely ignores him. He is
seldom invited for retail seminars. But Biyani didnt care. He was quite content being
outsider who at the end built up his Rs220 crore business in nascent Indian retail sector.
Born in a middle class trading family Kishore Biyani started his career selling stonewash
fabric to small shops in Mumbai. Years later, with the launch of Pantaloons, Big Bazaar, Food
Bazaar, Central and many more retail formats, he redefined the retailing business in INDIA.
During his childhood, he used to act and behave differently much to the annoyance of some
family elders. His room was filled with posters of cars and cricket stars. What really troubled
others was his inclination to question every social or religious practice followed by the
family. He needed logical and sound explanation behind any religious activity. He was
obsessed with rationality.
He trusted his own ability so strongly from day one that he never needed to be on the side of
established hero. Like while playing game of cricket, he was ever willing to take up the
opponents challenge in spite of a weak team. Out of his own confidence he encouraged his
team members to give it their best, even if they were destined to lose the match. And he did
everything to win the match. While in college he organized Disco Dandiya in his own locality
first of its kind in South Mumbai. It was first popular trend that he picked on early and was
able to capitalize on it.
As per him, there are 3 kinds of entrepreneur- creators, preservers, and destroyers. He knew
that his father and uncles much like most others entrepreneurs in India were preservers. While
Page 13

he was both creator and destroyer. He never believed in preserving the status quo. A
continuous process of change and of growth has to be there in every business.
So as one grows and starts to learn and understand life, he starts to question as well. At a very
early stage, one starts creating mental models to interpret various observations. At that point
if one finds that what he has learnt on his own is different from what is being practiced in
reality. He tries to distinguish the right from the wrong. He soon starts to seek answer to
everything and then life transforms. So attitude of questioning is very important. Until one
questions the establish way of doing things, one wont be able to come up with something
new. Thus he left his family business and started his own journey- entrepreneurial journey..
DEFYING THE ODDS:

He kept looking for beachheads to realize his dreams. He tried multiple things that could be
ideal for new India that was emerging. Some of these were moderately successful but most
of them had to be closed down after few years.
WHITE BLUE BROWN: He got involved in launching a brand of fabric for mens trousers
named it WBB. It was abbreviation of three most popular colors for trousers those daysWhite Blue & Brown. He used to sell these to garments manufactures and shop owners
around the city. He used to regularly set up his stall at various textile exhibitions and fairs so
as to what industry were up to. He also spent a few lacs rupees on advertising and hired an
advertising agency. During its peak he sold almost thirty to forty thousand meters of branded
fabric every month. Thus power of branding was evident with success of WBB..
ON TONGA TO TARAPUR: With short success of WBB, he went ahead and started selling
readymade mens trousers. He got some 30-40 trousers stitched and showed it to some shop
owner but none of them were interested in doing business with small company. So by the end
of 1985 with the help of some friends he opened 400sq. feet shop at CP tank in Bombay. It
sold mens trousers and called it Patloon. That was his first retail experience.
He established a small fancy yarn plant at Tarapur with Sushil Sain and named it Dhruv
Synthetics. He used machines with microprocessors that gave fabric an effect of fancy yarn.
During first year of operation, his company sold goods worth of crore of rupees. People were
Page 14

becoming more fashion conscious and they used to secure large orders from fashion designers
and some exporters. But later on due to labor dispute the company had to be shut down.
MANZ WEAR: Manz wear private limited was incorporated on 12 th October 1987. He
started as garment manufacture, launched a couple of brands, got into franchising, and direct
marketing and ten years later plunged into modern retail. During this time, the companys
name changed from manz wear to pantaloon fashion and subsequently to Pantaloon fashion
retail, reflecting the changing nature of business. Within a year of its operation, the company
touched a turnover of Rs 32 lakh. But it also registered loss of Rs 8 lakh. The main reason for
that of course was the Rs 16 lakh spent on advertising and brand building alone. The whole
industry was going through metamorphosis and he understood importance of brand building.
The company was planning to increase their horizon but the biggest stumbling turned to be
distribution channel and capital needed to set up a decent distribution network. So to work on
plan he along with a friend opened a franchise store in Goa. It was called a Pantaloon
Shoppe. The next set of Pantaloon Shoppe came in Cochin and Ernakulum in Kerela, Colaba,
and Andheri in Mumbai, on Ahmadabads C.G. Road and at Chennais T. Nagar. They
launched their own jeans brand, Bare Necessities.
Next came idea to make Pantaloon Shoppe a one stop destination for all apparel for menshirts, trousers, sports and denim wear, socks, ties and handkerchiefs. A brand of short was
introduced under the name of knighthood. With this, the Pantaloon Shoppe got positioned as
complete mens wear destination in 22 cities (1991).
THE NEW NEW THING:
Pantaloon is one of the leading retailer stores in the lifestyle segment of the consumer market
in India. Pantaloon stands out as a fashion trendsetter, on the lines of how fashion is followed
internationally. The look and whats in today for the season is sacrosanct. It offers trendy
and hip fashion that defines the hopes and aspirations of today's youth. Pantaloons stores
have a wide variety of categories like casual wear, ethnic wear, formal wear, party wear, and
sportswear for Men, Women, and Kids.
Pantaloons success and continuous growth in the Indian organized Retail market can be
attributed to a number of factors, some of which have been derived from the strategies of
Page 15

large retailers in the west, while others are completely tailor-made for the Indian market.
What is evident at the outset is that Biyani has foreseen and understood the Indian retail
roadmap better than anyone else.
Pantaloons major advantage over its competitors in the retail sector has been its unique
understanding of the Indian organized retail market with all its quirks, shortcomings, and
challenges. By creating a retail business from the ground-up and expanding rapidly,
Pantaloon has followed a Wal-Mart-like pattern of growth.
Visual merchandising is an art by which a retailer makes the store talk to customers. The
colors, signage, lights, looks, and feel everything is taken into account. It is very important to
figure out what is the story, the idea that they are selling to their customers.
Category management as opposed to brand merchandising practice: category management is
based on belief that a customer walks into a store looking for party shirt or formal trouser,
rather than a particular brand. Therefore store are designed according to categories like mens
formal wear, womens western wear or casual wear etc. within the organization too, teams
were divided according to the categories that they managed, rather than the brands. The
objective was to create traffic drivers within the store rather than make brands compete with
each other.
Pantaloons targets an upwardly mobile, young aspirational customer goes with the tagline,
Fast Fashion. The middle aged mother walks into our stores expecting value for money and
her daughter comes in because she finds it fashionable. The idea has always been to ride on
two winning retail propositions- being in fashion and effective pricing
He was the only one in the industry who was betting on the future, rather than the present. He
was focused on scaling up the business, rather than concentrating on driving efficiency and
profit margins. To me, that seemed to be the right way to approach this business at that stage.
Retail is a very local business and it is difficult for a foreign player to cater to the customer
base of different country retail requires a deep understanding of local taste and preferences.
What is evident from this period is that foreign retailers, even with deep pockets and years of
experience couldnt make much headway in India. As an indigenous retailer they had a strong
advantage over foreign retailers within India. Within two years of launching, they had
Page 16

established a fairly pan Indian presence with pantaloons. By the end of 1999, there were
thirteen Pantaloons outlets including four in Hyderabad, two in Chennai and one each in
Kolkata, Vijayawada, Nagpur, Bhubaneswar, Thane and Pune.
FOR GOD COUNTRY AND BIG BAZAAR

BIG BAZAAR LAUNCH
Is se sasta aur accha kahin nahi nothing captures the spirit of big bazaar better than this one
liner. It is simple statement and yet it positioned Big Bazaar at the top of the Indian
customers mind. It showed that big bazaar is built on foundation of entrepreneurship and
simplicity.
BIG BAZZAR is a chain department stores or hypermarkets, offering all types of consumer
goods including general merchandise, home furnishing, crockery, cutlery, utensils, sports
goods, and others at a reasonable price. The stores work on the economy model, offering the
best value for money propositions for Indian consumers. About 91 big bazaar stores were
in operation as of July 2010.
The initial big bazaar model was entirely dependent on consolidators. Consolidators were
people who knew the details of a particular category very well and had an industrial
background. These people were dedicated traders who have no educational qualification or
work experience with a blue chip company, but understood the market far better than the soPage 17

called professionals. They appointed eight consolidators to take care of sourcing for
categories like plastics, utensils, luggage, furnishings and furniture, general merchandise, etc.
who were given a broad matrix of the products , the targeted cost price and the margins .
Based on it they procured the product, warehoused it and transported it to big bazaar outlets
and made the commissions on supplies. The entire back-end was being taken care of by
traders who were willing to work till midnight or deliver goods to our store on Sunday
morning in their own vehicles, just to ensure customer demand has been met promptly. This
allowed them to focus on front-end and concentrated their energies on serving customer in
best possible manner.
In order to properly manage food bazaar within big bazaar a planned step was taken. Staples,
vegetables, and fruits are important categories but also were very difficult to manage. They
tied with largest wholesalers at varshi APMC (Agriculture Produce for Marketing
Committee) for vegetables and one of the largest wholesalers from Crawford for fruits. They
were given to manage the entire back-end as well as keep their own people to manage the
category within stores. It simplified the business. As a result FOOD BAZAAR AND BIG
BAZAR expanded and developed without them getting involved in intricacies of each
category and company focused on appealing to the customer.
It became a platform for amalgamation and Kishore Biyani left a lot of value to be shared
with these traders. He operated on the principle that it was not about slicing the current
opportunity but about growing it further. He built a conviction that if collectively if they
were able to grow the opportunity a modern retail format provided, there could be actually 3
winners the customer, the vendor and the company.
In a business like retail, the primary concern should be how to understand and interpret the
customer needs and anticipate what they want. No doubt one needs a good supply chain, but
it shouldnt be at the cost of understanding the customers. You can always tinker around with
the supply chain at the next stage, but you cant blow up customer understanding.
So in process of growth with every store that is opened was an evolution an evolution of
understanding of our customers and an improvement of what we find works with customers
and what doesnt.
The challenge for them is that as they grow in size and scale, they have to ensure that their
supply partners grow faster and are able to meet their demands. They are working with them,
Page 18

funding them, and mentoring them towards this end. For example, in staples they have
brought together their partners and formed together a company that will supply quality
products to the store. They are investing in automation and technology for this company.
They are helping the company to hire senior professionals, so it can grow fast and keep pace
with their own growth and requirements. Beside, the group has raised a private equity fund,
in division, that can invest in small and medium companies and brands and scale up their
business. These companies have option of becoming the supply partners and leverage the
company distribution network to scale up their own brand value.
However big bazaar will continue to depend a lot on small and medium suppliers. A large
portion of what they sell at the outlets caters to local tastes and these products have to be
sourced locally. India has one of the best micro- entrepreneurial setups in the world and the
power of micro-enterprise to cut costs and drive efficiency is unparallel.
So in order to build a successful retailing model, modern retailers will need to leverage the
huge power of micro-enterprise and the indigenous supply chain present in India.
BOLLYWOOD CALLING
Now by 2000, the focus shifted on building big bazaar as mass retailing brand based on a
strong value proposition. Because it was clear that it was the time for hypermarket model and
so they had to scale up fast and reach out to a mass customer base. The big bazaar tagline
promised to offer good quality products at the cheapest price in town. And to gain the
mindshare of customers, this proposition had to generate a certain amount of buzz.
As retailers of garments and fashion products, they were always constrained by the amount of
money, which they could spend on advertisements. By early, cricket stars and properties had
become too expensive for them to afford. Movies on the other hand, seemed to be an ideal
vehicle to build their brand and take it to the masses.
A movie budget runs into at least a few crores. However, with in-film advertisements and
film-merchandising, which were new concepts at that point of time, a brand message could be
reached out to the huge audiences. Their thought was that if they could use this opportunity
effectively, movies could become the most efficient communication vehicle for them.
They were among the first people to strike a deal with ESPN in the mid-nineties. They even
made a strategy to promote their pantaloons store brand through making and investing in
Page 19

bollywood movies to say simply. The film was an unpaid advertisement vehicle that would
reach out to all the movie-going audiences across the country. Apart from producing the
movie, they were also somewhat involved in creating the music for it as well. They also
developed the marketing game plan for it.
Pantaloon Retail (India) Limited

Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail
formats
in
both
the
value
and
lifestyle
segment
of
the
Indian
consumer
market. Headquartered in Mumbai (Bombay), the company operates over 16 million square
feet of retail space, has over 1000 stores across 73 cities in India and employs over 30,000
people.
The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a
uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch
and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality
and Central, a chain of seamless destination malls. Some of its other formats include Brand
Factory, Blue Sky, aLL, Top 10 and Star and Sitara. The company also operates an online
portal, futurebazaar.com.
Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India)
Limited. This entity has been created keeping in mind the growth and the current size of the
companys value retail business, led by its format divisions, Big Bazaar and Food Bazaar.
The company operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other
formats, in over 70 cities across the country, covering an operational retail space of over 6
million square feet. As a focussed entity driving the growth of the group's value retail
business, Future Value Retail Limited will continue to deliver more value to its customers,
supply partners, stakeholders and communities across the country and shape the growth of
modern retail in India. A subsidiary company, Home Solutions Retail (India) Limited,
operates Home Town, a large-format home solutions store, Collection i, selling home
furniture products and eZone focussed on catering to the consumer electronics segment.
Pantaloon Retail is the flagship company of Future Group, a business group catering to the
entire Indian consumption space.
Page 20
Page 21

Big Bazaar
Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain launched. Big
Bazaar is the chain of retail stores of the big banner Pantaloon Retail (India) Ltd. , which in
turn is a segment of the Kishore Biyani , regulated Future Group of Companies. Moreover the
customer friendly ambiance and the organized retailing of products also makes Big Bazaar
one of the successful retail companies in India.
There are 89 Big Bazaars in India and the format is the highest revenue and profit generating
unit for the Future Group that Biyani founded. Biyani has plans to hive off Big Bazaar and
may eventually take it public after doubling the number of stores by March 2009 .
It cannot be a zero-sum game anymore. We need to create win-win-win scenarios - where we
can win, our business partners can win and the customer can win.
where he describes himself as the creator and destroyer (and re-creator) of all that he builds he doesnt believe in preserving because thats when the company starts stagnating. So, every
few years, KB changes their entire organization structure to adapt to the current and future
environments, and thats why they now have a new name Future Group :
ACE future the word which signifies optimism, growth, achievement, strength, beauty,
rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet
unwritten; create new opportunities and new successes. To strive for a glorious future brings
to us our strength, our ability to learn, unlearn and re-learn, our ability to evolve.
We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in
the consumer space and facilitate consumption because consumption is development.
Thereby, we will effect socio-economic development for our customers, employees,
shareholders, associates and partners.
Big Bazaar is not just another hypermarket (a bit like a discount store). It caters to every need
of your family. Where Big Bazaar scores over other stores is its value for money proposition
for the Indian customers. It provides discounts ranging from 8-6 percent to the market.
Promising that nobody sells cheaper and better, the Big Bazaar store, and offers special
discounts and offers of up to 60 per cent on more than 1,60,000 products 365 days a year.
Page 22

Food Bazaar
Ab Ghar Chalaana Kitna Aasaan
Food Bazaar invites you for a shopping experience, unique by its ambience. At Food Bazaar
you will find a hitherto unseen blend of a typical Indian Bazaar and International supermarket
atmosphere.
Flagged off in April02, Food Bazaar is a chain of large supermarkets with a difference,
where the best of Western and Indian values have been put together to ensure your
satisfaction and comfort while shopping.
The western values of convenience, cleanliness and hygiene are offered through pre packed
commodities and the Indian values of "See-Touch-Feel" are offered through the bazaar-like
atmosphere created by displaying staples out in the open, all at very economical and
affordable prices without any compromise on quality.
The best of everything offered with a seal of freshness and purity will definitely make your
final buying decision a lot easier.
Futurebazaar.com
Futurebazaar.com offers the widest range of products at lowest prices everyday! Having
pioneered the retailing business in India, PRIL has now decided to revolutionize the
consumer e-commerce business in India. It intends to provide customers with a streamlined,
efficient and world class personalized shopping experience, which will be supported with the
best technology platform. Buying products is a 3 step simple process. All one has to do is
Search, Register and Buy. Here you can expect a shopping experience akin to shopping at an
actual bazaar but with added simplicity & everyday low prices and an assurance of 'your
product' will be delivered within 7 days of purchase. We are proud to inform you that Future
Bazaar has been named as the Best Indian Website 2007 in the Shopping category by PC
World.
Future Bazaar won the top spot after beating other established players like Rediff, Indiatimes,
Sify, ebay, Indiaplaza, Chennai Bazaar and India Mall. The award was presented to Future
Bazaar for its "decent, no-nonsense approach, while providing a good shopping experience".
Page 23

Brand Factory
Brand Factory brings to the Indian consumers the promise of revolutionizing value
shopping by offering the best Indian and International brands at Smart Prices Brand
Factory promises its customers that value shopping is not about seconds experience, its not
about a garage sale environment and its not about buying cheap. Instead, its all about an
amazing experience of Buying Smart.
The thought behind Brand Factory is to raise the bar of expectation and experience when it
comes to Brand + Bargain Shopping. Over the years Factory Outlets have become distinct
shopping destinations with distinct audiences. With fashion cycles reducing, larger quantities
of stocks are reaching factory outlets. But then what gets compromised in the process is the
brand and its image.
The emphasis at Brand Factory is to offer the customer the widest range of brands and
categories possible at absolutely great prices, in an ambience that befits the brand. Brand
Factory presents the brands in a fully air-conditioned, slick environment varying between
70,000 to 1,50,000 square feet.
The stores offers a wide range of products including apparels for men and women; infant
wear; accessories; cosmetics; footwear; sportswear, luggage; home linen and much more.
Brand Factory hosts several Indian and International fashion brands including Levis, Pepe
Jeans, Dockers, Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis Phillip, Allen
Solly, Reid and Taylor, Gini and Jony amongst others.
Page 24

Central
Shop, Eat and Celebrate
Launched in May'04 at Bangalore, Central is a showcase, seamless mall and the first of its
kind in India. The thought behind this pioneering concept was to give customers an
unobstructed and a pure shopping experience and to ensure the best brands in the Indian
market are made available to the discerning Indian customer.
Central offers everything for the urban aspirational shopper to shop, eat and celebrate.
Located in the heart of the city, Central believes its customers should not have to travel long
distances to reach us; instead we must be present where customers frequently visit.
Central houses over 300 brands across categories, such as apparel, footwear and accessories
for women, men, children and infants, apart from a whole range of Music, Books, Coffee
Shops, Food Courts, Super Markets (Food Bazaar), Fine Dining Restaurants, Pubs and
Discotheques. The mall also has a separate section for services such as Travel, Finance,
Investment, Insurance, Concert/Cinema Ticket Booking, Bill Payments and other
miscellaneous services. In addition, Central houses Central Square, a dedicated space for
product launches, impromptu events, daring displays, exciting shows, and art exhibitions.
Central is an integral part of the city and in the long run a City should become part of
CENTRAL!
In a short span of its existence Central has revolutionized and redefined the shopping
experience in India. At Central, customers no longer only shop, they get SHOP-ATAINED!
We invite you to experience this irresistible retail destination at Bangalore, Hyderabad and
Pune cities.
Page 25

Planet Sports
India's largest multi-brand sports and lifestyle speciality retail chain, Planet Sports offers the
largest collection of International sports and lifestyle brands. Planet Sports stores have
extensive offerings for sportswear and equipment across all categories including running,
tennis, training, golf, fitness, basketball, motor sports as well as other lifestyle products. Also
available at the Planet Sports stores are lifestyle products across categories like footwear,
apparel, accessories and sports equipments.
Planet Sports prides itself for the sports expertise it has built over time and also for having
introduced renowned brands across sports categories like swimming, tennis, squash,
badminton, soccer, golf and basketball. Its brand portfolio includes leading sports brands like
Converse, Speedo, Wilson, Prince, Callaway, Spalding, Airwalk, Adidas, Puma, Nike and
Reebok. One of the most preferred destinations for sports lovers as well as avid sports
professionals, over time, Planet Sports has become an ideal conduit for the latest in global
trends in the sports and lifestyle segment.
The aim of the company is to be the most admired sports player in a multi-sports, multiproduct format and to augment Indias sports culture. Planet Sports strives to provide
integrated, reliable and cost efficient sports offerings to Indian consumers. At the core of
Planet Sports lies its consistent endeavour to innovate, ideate and the essence is well reflected
when they say For the Sports called Life.
Page 26

Lee Cooper
Legacy of 100 years combined with best fabrics, coolest fits, most amazing washes and the
finest quality denims, thats what Lee Cooper is all about.
Founded in 1908 by Morris Cooper, Lee Cooper is one of the original denim brands in the
world today. Since inception, Lee Cooper has been at the forefront of British and European
fashion for decades leading trends, developing innovations and driving youth culture. Already
distinguished from its American counterparts as the Great British and Original European
Jeans brand, Lee Cooper is now in India, as Lee Cooper India Ltd.
In India, the brand maintains its global promises of offering exceptional young products
supported by a communication message that mixes fashion, sport and entertainment,
enhanced by fantastic product images. Regarded as a brand that is fun to wear and be
associated with, Lee Cooper offers the entire range of lifestyle products in the fashion
category for young men and ladies.
The brand is distributed through exclusive brand stores and large format stores such as
Central, Pantaloons etc. The casual wear range includes jeans, shirts, T-shirts, shorts, nondenim trousers, sweaters, sweatshirts, capris etc. The lifestyle brands from Lee Cooper
include:
Lee Cooper: Men and women.
Blue Diamond: An exclusive casual line for men and women for the Indian market.
Lee Coopers Juniors: For boys and girls between 4-14 years.
Lee Cooper through Famous Basics offers a great range at affordable prices without
compromising on the quality. You can find a range of Mens shirts, knits and denims, as well
as womens range of shirts, knits and denims. These are available at all Big Bazaar and
Fashion@Big Bazaar stores. In India, the company also markets Lee Cooper sunglasses and
eyewear. Over a period of 100 years, Lee Cooper has established a cult following amongst
people from all spheres of life. Shoppers can get a glimpse of Lee Coopers much revered
Page 27

past at their exclusive stores, which showcase the magical and nostalgic moments of the
journey of the brand, right from its inception till date.
HomeTown
A home is a space away from the world, a comfort zone. Therefore, the process of setting it
up should be equally comfortable and convenient. HomeTown, a unique, first of its kind
home improvement retail format in India, is a one-stop destination for complete homemaking solutions. It provides consumers, all that goes into building a house and everything to
make it a Home, all under one roof. It offers a home making experience that is democratic,
hassle free and convenient, with an array of home products and services of skilled
technicians. All of this comes with service and product warranties and great affordable prices.
HomeTowns range of products include:
Furniture
Bath and Sanitary Ware
Modular Kitchens
Paints and Wallpaper
Tiles and Wooden Flooring
Carpentry and Hardware
Electricals and Decor Lighting
Electronics
Furnishings and Accessories
The format also offers a one of its kind Design and Build service, which encompasses
experienced designers who help design the home, and a team of skilled technicians for
services like carpentry, flooring and tile installation, plumbing, sanitary ware installation,
Page 28

painting and wall paper, electrical fittings and much more. Design and Build is flexible,
transparent and easy on the pocket.
EXPERIENCE EELECTRONICS
E zone
Sight, Sound, Smell, Taste and Touch.Bring all your senses alive for a never before
shopping experience at Ezone, the electronics specialty store that offers a wide range of
leading consumer durables & electronics brands, to meet the electronics needs of the entire
family. Ezone, with the catch phrase experience electronics is an experience led lifestyle
format that brings together the best in national and international consumer electronic and
durables brands in a family-centric environment. Typically in excess of 12,000 square feet in
size, an eZone store truly enables you to experience electronics, through three dedicated
zones - Liberation Zone, Experience Zone and Home Zone. The Liberation Zone offers
personal products like computers, laptops, handy cams, MP 3 players and mobile phones.
While entertainment products such as Plasma / LCD, Flat TVs, Home Theatre systems, DVD
players, and Stereo systems are displayed in the Experience Zone. And in the Home Zone
segment, one gets to pick electronic goods of his or her choice including Refrigerators, Air
Conditioners, washing machines and Microwave ovens among other kitchen related
appliances. Ezone is not only about showcasing electronics products and gadgets, but
providing you with a complete shopping experience through touch & feel, allowing you to
pick and choose from an array of best of brands under one roof. eZones are primarily stand
alone concepts, but are also present within the Central malls. E-Care - the special post
purchase customer service support Ezone also offers an unparalleled service and support
through the special E-Care customer support centre. E-Care is a special, dedicated support
system designed to offer the best customer service after purchase of any product at EZone.
Page 29

Furniture Bazaar
Furniture Bazaar is the specialty Furniture & Home Dcor Store that attempts to democratize
the process of home decoration by offering the trendiest Indian and imported products at the
most affordable prices.
Located within most Big Bazaar stores and as stand-alone outlets, it offers a complete range
of quality furniture, modular kitchens, lighting, furnishings, crockery and home accents at
affordable prices. The store provides a live display of living rooms, bedrooms & modular
kitchens with furnishings and accessories to provide customers a first hand look and feel of
how the furniture would look in their homes.
Sourced from various international destinations, the store caters to the furniture and home
dcor needs of your entire family.
At Furniture Bazaar you will find the a live display of living rooms, bedrooms & modular
kitchens with furnishings and accessories to provide you a first hand look and feel of how the
furniture would look in your home.
Collection
Collection i is a lifestyle furniture retail format that is built on the concept of Ideas for good
living. Positioned as a complete lifestyle solutions offering, for the homemaker, Collection i
stores are designed to showcase the best of furniture in the segments of Living and Dining,
Bedroom, Modular Kitchens and Childrens furniture. Today, customers have greater
sensitivity towards the look of their home. For them, Home is no longer just an indicator of
status; it reflects their interests, lifestyle, global outlook and multi-dimensional personalities.
Collection i provides solutions that meet this evolving lifestyle by offering products which
are in-sync with the latest international home-making trends, designs, sizes, choices, special
features and configurations. Collection i is positioned to sell complete solutions for the
homemaker as opposed to selling individual products. As such, the store provides a live
display of living rooms, dining rooms, bedrooms & modular kitchens with furnishings and
accessories to provide customers a first hand look and feel of how the furniture would look in
their homes. Collection i also provides the customers the flexibility of adding or substituting
accessories and accents to the display, thereby creating their own ideas for their home. Inhouse designer Collection i has an in-house designer available to help you mix and match
Page 30

furniture, furnishings and accessories to create those perfect rooms. This service is offered
free of cost to customers.
Helpful Post-Purchase Support with one year warranty
Collection i also offers a dedicated support personnel for installation of the furniture and
complete support and service back up. Post purchase support and the one year warranty will
ensure a hassle-free post-purchase experience for you
Shoe Factory
Amazing Choices Amazing Prices
Shoe factory brings with it a fresh experience in footwear retailing. A value format, to the
core, Shoe Factory offers a huge range to choose from. Be it any brand, any size or for any
occasion you will find it all here.
Shoe factory showcases a wide range of the latest and trendiest footwear and accessories, at
great prices.
Flagged off in 2006, in Ahmedabad, Shoe factory will soon be seen in other towns and cities
bringing with it a new chapter in footwear retail.
When at a shoe factory store, you are bound to notice the simplicity of navigating through
well-defined zones for Men, Women and Kids footwear. Even the display is by Style, by
Brands and by Size, ensuring that shopping for footwear becomes easy and fun.
Depot
Books, Music & Gifts
Depot is one of the youngest brands from the Pantaloon stable and is a tribute to our freedom
of thought, speech and expression shared in a novel fashion with customers as books,
multimedia, toys, stationary and gifts.
Depot is all about freedom and democracy and this is reflected in the relaxed manner in
which products are displayed, the affordable pricing, the strong local flavour, the young,
lively and interactive store experience, that are all designed in a way to liberate these
categories and transform the way they are bought, sold and perceived in India.
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At Depot, book lovers are offered a range of books that meet the needs and preference of
every age group. From fiction to general reference, management and childrens material, you
will find it all at Depot.
Music buffs are invited to select from a wide category of music CDs and cassettes spanning
all genres like Rock, Pop, Hindi, Indipop and more. For the movie enthusiasts out there, we
have a great selection of home videos (VCD and DVD) and multimedia (CD-ROMs).
Depot Store also has an attractive selection of gifts (candles, mugs, photo frames, themed
packs) toys and stationery (office, childrens and fancy stationery) ensuring this is a one-stop
shop for everyone and anyone who plans to gift their loved ones.
At Depot we endeavour to give our customers an Indian experience where we celebrate and
give due importance to regional literature and music. In this regard, Depot aims to become a
strong member of the local communities it operates in through a variety of events,
engagements and social initiatives and we will be happy to keep you posted on these
activities from time to time. Depot is a lively, colourful, vibrant and happy retail space,
which we hope you will visit in the near future. Inviting Reading Corners where you can be
comfortable with a book of your choice and an Interactive Zone where you get to try out new
board games, read new books, check out new toys and browse at the Interactive kiosk, await
you at Depot.
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Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of Indias
leading business houses with multiple businesses spanning across the consumption space.
While retail forms the core business activity of Future Group, group subsidiaries are present
in consumer finance, capital, insurance, leisure and entertainment, brand development, retail
real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon
Retail, the group operates over 16 million square feet of retail space in 73 cities and towns
and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail
employs around 30,000 people and is listed on the Indian stock exchanges. The company
follows a multi-format retail strategy that captures almost the entire consumption basket of
Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail
chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big
Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with
the choice and convenience of modern retail. The groups speciality retail formats include
supermarket chain - Food Bazaar, sportswear retailer - Planet Sports, electronics retailer eZone, home improvement chain -Home Town and rural retail chain - Aadhaar, among others.
It also operates popular shopping portal - www.futurebazaar.com. Future Group believes in
developing strong insights on Indian consumers and building businesses based on Indian
ideas, as espoused in the groups core value of Indianness. The groups corporate credo is,
Rewrite rules, Retain values.
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PANTALOON RETAIL (INDIA) LIMITED
Back ground
Pantaloon Retail (India) Limited is Indias largest leading retailers. It operates on
multiple platforms like Value and life style segment in the Indian consumers market.
Company head quarters located in Mumbai. As on Feb 2009 Company operates over 12
million square feet of retail space, 1000 stores in 71 cities with employee strength of 30,000
people. The company is in aspect of giving retailing a modern look with reachable for middle
and middle lower class people. Retailing includes retail formats like Pantaloons, Big bazzer,
Food bazzar, brand factory, Blue sky, and Top 10, Star & sitar and e zone. The company also
operates on online future bazzar.com for upper class that can get internet connectivity. Home
Town a large-format home solutions store.
Pantaloon Retail is the flagship company of Future Group, a business group catering
to the entire Indian consumption space. Future Group led by its founder and Group CEO, Mr.
Kishore Biyani, is one of Indias leading business houses with multiple businesses spanning
across the consumption space. While retail forms the core business activity of Future Group,
group subsidiaries are present in consumer finance, capital, insurance, leisure and
entertainment, brand development, retail real estate development, retail media and logistics.
Corporate statement
Our customers will not just get what they need, but also get them where, how and
when they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
We will not just spot trends, we will set trends by marrying our understanding of
the Indian consumer to their needs of tomorrow.[2]
Page 34

Rewrite Rules, Retain Values.
Mail stone to world class retiling The company was established in 1987 as Manz wear private
Limited launched its first product Pantaloons rousers. In May-1992 company offered Initial
public offering. The company enters in modern retails business in 1997 from Kolkata with
8000Sq.ft store. In 2002 company initiated a lunch of food chain market Food bazzar. In 2004
central mall was lunched to concentrate on India one sector launched near brigade road in
Bangalore. In 2005 group moves beyond retailing starts diversification and in organic growth
by acquiring galaxy entrainment, Indus League clothing and Planet retail. In 2006 company
starts finical facilitation company to help internal need Future capital Holdings. Starts its first
Home building and improvement product retailing in Bangalore. Starts joint ventures with
Staples, US based company and with Genreali a Italian Insurance major. In 2007 Group had
turnover of $1 billion. Specialized companies in retail media, logistics, IPR and brand
development and retail-led technology services become operational. In 2008 big bazaar
crosses 100 malls.
Reorganization and awards
Coca-Cola Golden Spoon Awards 2008
2007 Images Retail Awards -Kishore Biyani
National Retail Federation Awards International Retailer for the Year 2007
Pantaloon Retail (India) Ltd
World Retail Congress Awards Emerging Market Retailer of the Year 2007
Pantaloon Retail (India) Ltd
Hewitt Best Employers 2007 Best Employers in India (Rank 14th) Pantaloon Retail
(India) Ltd
PC World Indian Website Awards Best Indian Website In The Shopping Category Futurebazaar.com
Ernst & Young Entrepreneur of the Year Award Ernst & Young Entrepreneur of the
Year (Services) Kishore Biyani
CNBC Indian Business Leaders Awards The First Generation Entrepreneur of the Year
Kishore Biyani
Lakshmipat Singhania IIM Lucknow National Leadership Awards
Page 35

Strategies
The company observes retail customer trend and changing consumption tastes.
Organization is customer driven opposed to product driven .Company is very conscious about
culture and regional consumption pattern. Strategies change frequently due to orient to the
customers needs. The continues of learning, unlearning and relearning is applied to update
the quick changing strategies across the organization. As Kishore Biyani MD Pantaloon retail
India LTD says Retail is like riding bicycle. In uphill if you stop pedaling you will slide
down. The statement express the need of continues learning process to form the strategies.
Based on analysis its business strategies can be categorized in 3 major groups. They are
Diversification strategy
Classes destination strategy
Maximum market shares strategy
Diversification strategy
The company started its business as textile manufactures but growth in modern
organized retailing attracted the company to switch diversify to the next consumption pattern.
The company diversified and acquired a large business in organic and inorganic way. But
company did not forget ripe its strategy and values in the diversified company. In every new
business company started to rewrite the rules by retaining values. The company in latter
stage organized to support each other by physical material flow if required.
Diversification is done in two main categories RETAIL FORMATS and
SPECIALIZED BUSINESS shown in Figure 2.
Page 36
Classes destination strategy

Future group has diversified its business keeping the retiling as common goal. To set
and concentrate on one stratum is main objective of this strategy. Each business is set to
operate on defined strata. Company has divided Indian customers in three different groups.
INDIA ONE, INDIA TWO, INDIA THREE. Each has different values, products and quality
requirements.
INDIA ONE or consuming class .The population of this constitutes only 14%.Till
recent times the modern retiling formats is offered for this class. According Maslows theory
of hierarchy the 14% people are in self actualization and Esteem needs in the pyramid. For
this class pantaloon patterned Future bazaar, E zone, Central, brand factory, Home town and
star Galaxy entertainment.
INDIA TWO or the serving class it includes people like house hold helpers, office
peon etc. This is the people who make service INDIA ONE class. The population of this class
is more than 30%. In the needs hierarchy they are located in for Social and security .Earning
capacity of this class is 60% lesser than INDIA ONE. For this class as the big bazaar, Food
bazaar, Future money and other retail formats are presented.
INDIA THREE or struggling class. The class led life on hand to mouth existence.
They cant afford for beater living style. This segment doesnt contribute much in the
contribution cycle. The need of the segment is local as they are finding it cheaper. The
present business model is not addressing this class.
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Figure 3 shows change in consumption
patter by different class in 2001-02 and
2007-08.INDIA ONE has changed from
25% to 35% normally the total profit in
this segment will comparatively 20%
more than they are sold in next segment.
As ambiance is factor and other pleasuring non value added services are necessary. INDIA
TWO has not changed it conception level. INDIA THREE has seen 10 % decline.
Maximum market shares strategy

The retail chain by pantaloon in all business patterns tries to achieve maximum
market share in all the products or service it provides .The Company does not bothers about
short term profit or loss by a strategy. This are considered as learning. The business will sell
at marginal profit some times to attract the new customer who will prove potential customers
in future. The strategy achieved by focusing pricing factors in INDAI TWO and on service
and quality in INDIA ONE.
Pricing strategies
Pricing is strategy used by Pantaloon retail chain to attain maximum market shares.
The company offers numerous schemes to attract the new customer as well as to retain the
present customers. The companys schemes are categorized in following groups
Value pricing
This approach is used where external factors such as recession or increased
competition force companies to provide 'value' products and services to retain sales.
The product value will be associated with external factors.
Promotional pricing
Pricing to promote a product is a very common application. The application of
this done by BOGO (Buy one Get One), BTGO (Buy Two Get One Free) etc.
Bundling
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Bundling is marketing tool sell two or more complementary product as a
package with attractive price. The price is will lesser then individual selling price.
Example:
A Person needs one soap for a period of time But bundling with
attractive price with more than 3 soaps can attract them.
Low interest rate financing

Future money helps in asset purchase at 0% interest.
Physiological discounting
In India this approach is called as Bata rating system. Organization utilizes
this approach when product has emotional value rather than rational value. Example a
product is priced for 99 instead of 100.When board shows price reduction from 100 to
99, Consumer looks at 3 digits to 2 digits rather than exact value.
Time pricing
The innovative way of attract the customer is Timely pricing it is known that
during holidays rate of customer is more. Reduction of profit margin with lot of
advertisement will invite new customers. The company has learnt it from strategy
made on public holiday 26-Feb. When the turnover of the day reached 30 cores where
average is 5 cores.
With such experience crowded management is essential so to divert potential
customers Wednesday bazaar where it will offer less profit margin sales.
Bundling
Marketing: Technique of offering two or more complementary goods or
services together as a package deal. Bundled items are sold at a price attractively
lower than the total of their individual selling prices.
Levers issues
Human resource
Well trained staff, Appearance, Empowered individuals, Use scenario planning as a tool
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for quick decision making, Brand ambassador
Organization structure & controls
The entrepreneurial culture and spirit prevails in the company, Appetite for taking
risks is encouraged, learning while doing, No rigid organizational structure,
organization design approach, Balanced Score card approach
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Alternative strategy formulation
The retailing strategy work sheet worked out on the basic facts and requirements.
According to the Retail strategy work sheet in figure 4. To attain all the Retail outputs at the
required level company should chose retailing business with the Internet shopping mode.
This model provides great availability because the customer orders are processed and orders
are given to suppliers immediately if product is not available the next supplier will be asked
to supply.
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Cost can be reduced drastically as there is no fixed assets or big infrastructures or
inventory is required the complete model works on customer money because customer will
pay fir for the item he will get tomorrow.
Can provide customer with good quality as there is no chance of perishing. Home
delivery is compulsory in this model in which customer can enjoy the pleasure of getting
goods on door. There is no billing time in this model as it is internet base within fractions of
second billing is done.
Why not e-retailing

The organization focused on mall base selling rather than e business in initial stages.
Apart from having so many advantages company had no focused on this pattern. The reasons
for not selecting this system is probably
Targeted on INDIA ONE initially , Who are away from internet services
Supplier base and support was not so strong
Absence of good software support in supplier management
E business threat of cash jam in initial days
Face to face communication is tradition of Indian retailing from many years
The threat or cyber crime
Page 42

Case Study
(Big Bazaar)
Kishore Biyani's saga starts with his family business in textiles, which he joined after
graduating in commerce. In 1987, Biyani launched the first branded ready-made trousers
brand known as Pantaloon through his company Pantaloon Fashions. The trousers were
marketed through the Pantaloon Shoppe stores. By the time Pantaloon Fashions went public
in 1992, it had 60 exclusive shops. Later, he started manufacturing garments under two more
brands-John Miller and Bare. Despite pod products and competitive pricing, the business
seemed unviable due to high distribution costs and margins. Therefore, in August 1997,
Biyani decided to open his own store at Kolkata to market these brands. He was expecting to
do business of around Rs 70 million in the first year, but beating all expectations, the store
did a business of Rs 100 million. This experience was an eye-opener for Biyani, who came to
know that Indian market is 'under-retailed'.
The year 2001 saw Biyani's entry into the hypermarket concept adapted to Indian conditions
in the form of Big Bazaar. During that time, Pantaloon's topline was around Rs 1.8 billion.
Big Bazaar required a lot of investment and the company had generated profits only worth Rs
40 million. It was not feasible to raise money from the market as the share price was low at
Rs 18. This would have also meant the dilution of equity for the Biyani family, which held 40
per cent of the equity. Exposing himself to high-risk debt exposure, Biyani had to go
for a loan of Rs 1.2 billion. Failure of the Big Bazaar concept would have left the company
in red. As it turned out, the first Big Bazaar at Mumbai clicked with the masses and pulled
over 100,000 people within the first week of its operation. It thus paved the way for many
more stores throughout the country.
Biyani wanted to give the Indian customer the feel of a local market place-- narrow lanes,
crowded marketplace, and customers bumping into each other and into commodities. Big
Bazaar wears the look of intentional distinctive layout scheme designed by Biyani. He is
quite clear that Indians like the hustle-bustle of the marketplace, which gives them a feeling
that the goods being sold there are low-priced. The major challenge before the retailers in
India was to dispel the myth in the minds of the Indian consumer that big shopping stores
charge more prices for commodities, compared to the local kirana stores, due to high
Page 43

overhead costs. Big Bazaar and Biyani have been able to successfully overcome this
challenge by way of clear communication to the public through their advertisement
campaigns. The economies of scale enable big retailers to provide lower prices, discounts,
and promotional gifts at their stores.
Biyani has exploited the economies of scale to the hilt, from raising finances to negotiating
rentals for the store space. During his earlier days, he used to pay about Rs 75 million for a
50,000 sq. ft store and would generate an annual turnover of Rs 3.5 billion. Today, for a
store of the same size, he spends about Rs 40 million and generates a turnover of about Rs
500-600 million. This may be partly attributed to the mall-making frenzy in the country,
whereby builders prefer to rent their spaces to outlets, which have the ability to pull crowds.
There was a time when Biyani had to do the interiors for the space after acquiring a leased
space. Not anymore, as the builders are ready to provide fully-furnished stores to let him
start the operations immediately.
Biyani has often tied up with manufacturers to bring down the selling price of the products
sold in Big Bazaar. For example, there were days when the lowest price of a pair of denim
jeans for their Bare brand used to be Rs 695, while Newport used to be the cheapest brand in
the market at Rs 599. Big Bazaar contacted Arvind Mills to know whether they were willing
to provide jeans at Rs 299 per piece to them, if the company bought 100,000 units every
month. Thus, Arvind created the Ruf-n-Tuf brand exclusively for Biyani's stores and got into
a similar contract for T-shirts. Big Bazaar is able to engineer its own prices with its tie-ups
with big manufacturers in the product categories of plastic, food, leather, etc.
In June 2002, Biyani started Food Bazaar within the Big Bazaars. Now over the period of
time, Food Bazaar has several separate outlets. Biyani's focuses on the 'farm to plate'
concept in Food Bazaar. According to him Indians prize 'freshness' in their food. Therefore,
while managers elsewhere in the country are focusing upon creating a cold storage chain to
preserve eatables, Biyani's vision is to have the farm next to his stores. The Food Bazaar at
Ahmedabad has a full-fledged dairy having a capacity of 1000 litres a day and produces its
own paneer and pasteurized milk. It also has a spice grinder and an atta chakki (flour mill).
To quote Biyani on this aspect, 'Managers always complicate things. It is the MBA culture.
B-Schools teach you how to manage complexity, but I don't think that is necessary. Life is
quite simple.' Biyani has created in-house labels for certain products. For example, his stores
Page 44

sell the in-house ketchup brand for Rs 38, while the nearest rival brand is priced at Rs 58.
By 2008, Biyani is targeting to occupy 60 per cent of the shelf-space in his stores with inhouse brands.
Another major decision taken by Big Bazaar was to use the traditional supply chain rather
than developing its exclusive supply chain to replenish its stores, now located in every part
of the country. The traditional supply chain is used by the small as well as big kirana stores
and has various elements such as the manufacturer, clearing and forwarding (C&F) agents,
distributors, wholesalers, and finally the kirana stores. Biyani chose this traditional supply
chain not only because creating an exclusive distribution system is highly capital intensive,
but also because the distributors play a major role in the traditional supply chain by
operating at wafer-thin margins while utilizing their family-owned warehouses inherited
from generations. Most of these distributors involve their family members into the business
and are ready to provide goods even in small quantities by using inexpensive modes of
transportation such as cycle rickshaws. By following this strategy, Big Bazaar runs the risk
of facing shortages in scenarios where a particular product related promotional scheme is
launched in all its stores simultaneously. These distributors may then be swamped with
orders from the stores, which may be beyond their capacities to handle. It is yet to be seen
how this system works in the wake of competition from the new players such as Reliance,
and Wal-Mart (which is entering the Indian market in collaboration with Bharti). The R.P.
Goenka (RPG) enterprises and the K. Raheja group have always been stiff rivals by way of
retail outlets such as FoodWorld and Shoppers' Stop respectively. Then there are smaller
players in the hypermarket arena such as FabMall lndia, who may also grow stronger over
the period of time. The mettle of the so called father of retailing in India, Kishore Biyani,
would be tested in this final countdown.
Page 45

Conclusion
Finally, it is important to note that these strategies are not strictly independent of each other;
value is function of not just price, quality and service but can also be enhanced by
Personalization and offering a memorable experience. In fact, building relationships with
customers can by itself increase the quality of overall customer experience and thus the
perceived value. But most importantly for winning in this intensely competitive marketplace,
it is critical to understand the target customer's definition of value and make an offer, which
not only delights the customers but also is also difficult for competitors to replicate.
Page 46

Bibliography
www.wikipideia.com
www.google.com
www.relianceindustry.com
www.bigbazar.com
www.raheja.com
Page 47

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Reorganization and awards

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