Content No.: Chapter I - Introduction To Industry

TABLE OF CONTENTS
Content
Chapter I Introduction To Industry
Introduction to Retail sector Retail sector growth in India Corporate Retail sector E-Retailing SWOT Analysis
Page No.
6
7 14 20 32
Chapter II Company Profile

Big Bazaar Marks & Spencer Shopper Stop Westside
38 40
41 60 90 113
Chapter III Research Methodology

Objectives Scope Methodology of data collection Limitations
143
144 145 145 146
Chapter IV Comparative Analysis

Introduction SWOT Analysis
147
148 150
Conclusion
160
[INDUSTRIAL REVIEW PROJECT] 200 9
CHAPTER-I
I NTRODUCTION T O I NDUSTRY
Introduction To Retail Sector Retail Sectors Growth In India Corporate Retail Sector E-Retailing Top Companies In Retail Sector
SWOT Analysis
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INTRODUCTION TO RETAIL SECTOR
etailing sector of India can be split into two segments. They are the informal and the formal retailing sector. The informal retailing sector is comprised of small retailers. For this sector, it is very difficult to implement the tax laws. There is widespread tax evasion. It is also cumbersome to regulate the labor laws in this sector. As far as the formal retailing sector is concerned, it is comprised of large retailers. Stringent tax and labor laws are implemented in this sector. If the retail industry is divided on the basis of retail formats then it can be split into the modern format retailers and the traditional format retailers. The modern format retailers comprise of the supermarkets, Hypermarkets, Departmental Stores, Specialty Chains and company owned and operated retail stores The traditional format retailers comprise of Kiranas, Kiosks, Street Markets and the multiple brand outlets. The retail industry can also be subdivided into the organized and the unorganized sector. The organized retail sector occupies about 3% of the aggregate retail industry in India.
Size and contribution of the retail industry in India

In terms of value, the Indian Retail industry is worth $300 billion. India retail industry is the largest industry in India, with an employment of around 8%. Its contribution to the Gross Domestic Product is about 10%, the highest compared to all other Indian Industries. The retail sector has also contributed to 8% of the employment of the country. The organized retail sector is expected to triple its size by 2010. The food and grocery retail sector is expected to multiply five times in the same time frame. The major reason behind the low participation in the Indian retail sector is the need for lumpy investments that cannot match up their break even points. The government policies are being revised from time to time to attract investments in this sector.
The Indian Retail Industry Sky is the limit

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In terms of the retail development index India ranks fifth. In Asia it occupies the second position, next to China. Among all the global markets, the Indian retail market is the most expanding. This is owing to absence in restriction at the entry level. So the large foreign companies can reap the benefits of economies scale by entering the green retail fields of India. There are many reasons why the retail industry in India can reach the zenith. Firstly the organized retail sector in India has a very low contribution to the entire retail sector in the country. Hence there is ample scope for the new players to achieve success in the backdrop of soaring disposable income of the upcoming generation. Secondly, not only have the incomes increased but there has been a sea change in the preferences of the consumers. These factors have acted as a stimulus for the ushering of foreign players retailing in apparels, accessories, electronic appliances etc. Large shopping malls have already mushroomed in the metropolitan cities. There still lies untapped potential in the Indian Retail Market.
The size of retail industry in an economy depends on many factors and the level of consumer spending is the most important among these factors. The retail sector in India has grown by leaps and bounds in the last five years. The reason behind this growth has been the synergy of many propellants. However the growth is not always genuine as there are exaggerations as well. But these exaggerations also have benefits since they given a feel of growing competition all around. Secondly the present situation is just a depiction of nascent stage. The future of the trajectory may not be as steep as it is now or may be even slope downward. 'What will be the future size of the retail industry' is the mind boggling question. Another moot point that will gain importance in due time concerns the future of the unorganized retail market which constitute a significant proportion of the whole industry. The retail stores have proved to be a vantage point for the customers. This implies that the small farmers who used to sell their product in the sabji-mandis and on roadsides are going to lose a significant market share as they can't employ the two profit maximizers-economies of scale and economies of scope.
Retailing in India: the present scenario

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The present value of the Indian retail market is estimated by the India Retail Report to be around Rs. 12,00,000 crore($270 billion) and the annual growth rate is 5.7 percent. Retail market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the different types of retail industries present in India. Furthermore around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world. The contribution of retail sector to GDP has been manifested below:
Country
Retail Sector's share in GDP (in %)
India USA China Brazil
10 10 8 6
Source: CII-AT Kearney Retail Study As can be clearly seen, retailing in India is superior to those of its contenders. Retail sector is a sunrise industry in India and the prospect for growth is simply huge. There are many factors that have stimulated the rise of the shopping centers and multiplex-malls in a jiffy. Some of them can be listed as follows: Rise in the purchasing power of Indians- the rise in the per capita income in the last few years has been magnificent. This has led to the generation of insatiable wants of the upper and middle class. The demand of new as well as second hand durables has risen throughout the country thus providing the incentive for taking up retailing.
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Favorable to farmers- retailing has helped in removing the middlemen and has thus enhanced the remuneration to farmers. This is a new revolution in the agricultural sector in India and will go a long way in amending the condition of agriculture, a major concern among policy makers. Use of credit- a typical Indian is most conversant with using credit cards than carrying money. These have led to a shift of the consumer base towards supermarkets and make the payments in the form of credit. Comfortable Atmosphere- a visit to a retail store appears to be more soothing for the generation-Y. People and kids prefer to shop in an air conditioned a tech savvy manner. The retail industry is the second largest employer in India. It currently employs about 7 percent of the total labor force in India. Finance Minister P. Chidambaram's recent statement salaries ought not to be legislated is a welcome move as most of the organized retail is in private hands. However only about 4.6% of the total retail trade is in organized sector. It generates about Rs.55, 000 crore ($12.4 billion). The major and minor players desperately need to work hard in this direction so that next time the figures look more decent. The government must also make an attempt to ameliorate the situation as political instability and infrastructure namely power and roads are the major roadblocks in the path of smooth functioning of the market.
Retail sectors in neighboring countries:

China - The total sales from retail market in China reached US$755 billion in 2005. However organized retailing in China accounts for only 20% of it. Also the fragmentation of China's retail market is so high that top 100 retailers make up for only 10.5% of the total market. The registered sales of department stores grew by 25.7% and that of convenience stores grew by 36.5% in 2005. The Chinese retail market is expected to reach new highs as the population of strong middle class is expected to double by 2020 and mergers and acquisitions among retailers are3 going in great guns. The WTO restrictions are also expected to have a favorable impact on its retail sector.
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Japan - total annual sales for the Japanese retail industry for 2003 amounted to JPY 133,273 billion. Japan had 1.2 million retail establishments in June 2004 and there were 42,738 specialty superstores. Between 2002 and 2004 annual sales per store increased by 3.8%. The growth was mainly driven by the grocery superstores but the number of superstores specializing in clothes gradually came down. The organized retail sector in Japan couldn't perform at its full efficiency because of collapse of the 'bubble economy' in the early 90s.
Retail Distribution in India

The distribution sector bridges the gap between the producer and consumer and thus forms a crucial link. Distribution of retail in India has multiple dimensions. Its uniformity is difficult to decide and easy to argue. Distribution in any sector is usually measured by the reach of its products to people. But in case of the retail sector in India it also implies the dispersion among the organized and unorganized spheres. The question of distribution hovers mainly around the intentions of private players to reach out to the less rich people. But the point that has caught the public eye recently is the ambiguous mood of the beneficiaries and the chauvinist government that produces civil service.
Propagation of the retail sector:

The expansion of the retailing in India has been magnificent especially after the advent of liberalization and the abolition of licensing. A comparative study with other developed countries indicates that the retail sector has achieved a fantastic breakthrough in the Indian economy. India topped the A.T. Kearney's Global Retail Index in both 2005 and 2006as can be seen below: The GRDI Score as calculated by A.T. Kearney is a weighted average of market attractiveness, market saturation, country risk and time pressure. India had a GRDI score of 100 in both 2005 and 2006.implying market potential and attractiveness. As the graph clearly depicts, India's contenders like Russia and China are nowhere in competition. This result has Page 7

been obtained mainly because of a higher APC (Average Propensity to consume) of the Indian people. According to IMF, India has a APC of more than 60% while the corresponding figure for Japan is 57% and China is 39%. Also Indians tend to exhaust 40% of their consumer spending on groceries (foodstuffs). These figures are intensified by the fact that Indians have special preference for lifestyle products and they feel comfortable in buying against credit as the credit card and mortgage market has been growing by more than 30%. We present the results from another survey below in order to strengthen our findings. Availability of Retail Stores
Country
Number of stores per 1,000 people
India Japan USA
22 10 3.8
The above table reinforces our view that India has done a great job in retailing. One noteworthy point here is that Japan in spite of being one of the most densely populated countries has fared poorly than India. But this euphoria loses its charm if we compare the percentage of organized retail in the total value generated by the retailing sector. According to international standards, a retail store is nominated as organized only when it features more than 10 employees. The above chart clearly portrays the miserable condition of India's organized retail A forecast of 40% annual growth in Page 8

the organized retail sector seems sound. The number of shopping malls in India has grown from 1 in 2001 to 100 in 2005 but still more effort is needed to turn the predictions into reality. Studies have further showed that non-urban areas account for only about 15% of organized retailing So it is high time that the retail industries pay importance to diversification and reach out to non-urban markets. If they remain confined to the metropolis then they will soon hit a ceiling and will be able to grow no more. But at the same time they must realize that the rustic people are sceptic about the urbane lifestyle habits. The mega retail players will have to drop their policy of full extraction of consumer surplus and will have to employ the local people to overcome the myth that entry of a branded retail will displace the millions of traders, shopkeepers and hawkers. Protests must be welcomed and meetings encouraged making life saner. Retail markets in Germany, South Africa and many other countries allow 100% foreign investment in retail. This has helped in setting up of cash and in creating wholesale markets. However, in India, only 51% FDI is allowed in single-brand retail and that too with prior approval. In case of multi-brand retail, FDI is completely prohibited. This is a perfect beginning but foreign investment should be gradually liberalized to modernize farming and help farmers scale up. Moreover, restricting FDI for protecting mom-and-pop stores seems unjustifiable since Tata, Reliance and Bharti have already made a foray in the sector.
Conclusion:
There are many hurdles in the path of smooth growth of the retail sector but a burgeoning and aware middle class and cultural and ethnic diversifications surely wait a revolution in the retail sector.
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RETAIL SECTOR GROWTH IN INDIA

In this section we may deal with the growth of sector of India. Due to the untapped potential that exists in the Indian retailing market, it is a very fast growing sector. One reason that can be attributed to this rapid entry of the foreign retail giants is that the Western Countries have reached a point of saturation in their retail sector. Another reason as already mentioned earlier is the change in the tastes and preferences or the psychographic of the consumers that is bent in their favor. Although the retail sector in India contributes to about 10% in the GDP, it is the most underdeveloped sector in terms of investments that are made in this sector. The unorganized retail sector has recorded a growth of 5% per annum while the organized sector is growing at 2530 % per annum. One should not be impressed by the figures of the organized retail markets since developed market in US, Taiwan, Malaysia is still a dream to the Indian retail market. They have registered a growth of 50% per annum. The retail stores have mushroomed in the Tier II and Tier III cities. The participants in the retail market hold the presence of market in the cities as a signal to their growth. It has been seen that the retail companies have invested in the IT sector for their growth and development. The IT sector has contributed greatly to the growth of the retail sector in India. The retail firms have made lumpy investments in Enterprise Resource Planning System as a strategy for their growth and development. SAP has also assumed a significant role in the growth and development of the organized retail industry. The sudden growth of the organized retail sector can be attributed to the ushering of the domestic Page 10 the organized as well as the unorganized retail

retail giants like Reliance, Pantaloons, ITC, RPG, Rahejas and the Bharti Group. The foreign companies continue to wait in the sidelines. These prominent retail chains have adversely affected the farmers in some states. Another viewpoint is that the farmers have rather benefited since they were eager on the market intervention of the retailers for the purpose of marketing and processing of their output. Since the big retailers reap the benefits of buying directly from the farmers, the consumers can purchase the products at minimal price rates. In places like Uttarakhand, the big retail chains are welcomed for the same purpose by the farmers. They have helped in putting finances in the right channels of processing and packaging. Growth of the Retail Outlets In India Outlets Food Retailers Non-Food Retailers Total Retailers 1996 2769 5773. 6 8542. 6 1997 2943.9 6040 8983.6 1998 3123.4 6332.2 9455.6 1999 3300.2 6666.3 9966.5 2000 3480 7055.5 10534.4 2001 3682.9 7482.1 11165
Source: P.G.Chengappa, Lalith Achoth, Arpita Mukherjee, B.M.Ramachandra Reddy and P.C.Ravi, Evolution of Food Retail Chains: The Indian Context, 5-6th Nov. 2003, www.ficci.com from the above table it is quite evident that there is a rising trend in the total retail outlets in India. The non-food retail outlets contribute more to this rise. The trend in the retail sector as compared to other sectors may be represented in the following graph. We can see that as compared to the clothing and the food and beverages industry the retailk industry has witnessed a sharp rise especially from 2002. Before that it was following a slow and steady pace.
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The growth of the different retail sectors can be discussed as under.
Growth of FMCG
The report produced by HSBC shows that the FMCG retail sector is expected to grow by 60 % by 2010. Leaving aside the packaging sectors, the other sectors that have registered rapid growth are hair care, household care, confectionery, chocolates etc.
Growth of Consumer Durables

The consumer growth industry is estimated to grow by 40% in the coming season. The television, refrigerator and washing machines sector has also witnessed a rapid growth. The market for Indian colour television is expected to reach the value of 10.5 million units by the next fiscal year. The refrigerator market is estimated to reach 4.5 million. Hence in a nut shell the retail industry in India has witnessed unprecedented growth in the past years. The organised sector is expected to make Quantum jumps in the coming years in terms of its contribution to GDP. The phase of high growth of Indian retail sector is expected to Continue due to huge amounts of investments and breaking up of traditional concepts in this sector. These are leading to various changes and are providing further boost to the growth of the Indian Retail Sector. The Indian Retail Sector that includes the traditional retail and the modern retail is estimated to grow at a very fast pace from US$ 336 billion, in 2006 to US$ 590 billion, by 2011. The traditional retail sector is expected to increase from US$ 324 billion, in 2006 to US$ 493 billion, by 2011. The share of the modern retail in the Indian Retail Sector is also estimated to increase from 4% in 2008, to 16% in the next five years. This exceptional growth is expected to take place in the retail sector due to large amounts of investment which is estimated to be about US$ 35 billion in the next five years. The "cash- and- carry" activities are expected to receive the majority of investments. Page 12

The maximum amount of growth in the Indian Retail Sector will be registered in the topmost 50 to 60 markets that are located in the urban areas. These markets would be mostly supermarkets and hypermarkets. However, these supermarkets and hypermarkets will also witness fast erosions in their margins. Further, it is estimated that in the longer run, the convenient stores that are located in the local neighborhood will continue to survive. A major focus area in the Indian retail sector is the supply chain management. In the western countries, the retail sector has a highly developed system of supply chain. However developments in supply chain in Indian retail sector has been quite slow. Other areas that need attention for the growth of the Indian retail sector to continue includes duty and tax structures, infrastructure, rising land prices and effective trend forecasting. Trend forecasting needs to be done in the country especially in the segments of cosmetics, apparel and footwear for this will help the retail companies to curtail their expenses substantially. Also another area that requires attention is manpower for it is estimated that the Sector of Indian Retail will suffer from shortage of manpower by about a million people, by 2012. The chains in the Indian retail sector need to frequently change their stocks and also adopt concepts like home delivery. If all these areas are given immediate attention then the growth phase of Indian retail sector would continue at a very fast pace. The Indian retail sector would then witness the setting up of retail parks that are flourishing in Europe. Further, the growth of the Indian retail sector would help in making the country ready for big retailers by 2015- 2016.
Scope of growth:
The scope of the Indian retail market is immense for this sector is poised for the highest growth in the next 5 years. The India retail industry contributes 10% of the countries GDP and its current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005. Page 13

The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market. The growth of scope in the Indian retail market is mainly due to the change in the consumers behavior. For the new generation have preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favorable. The scope of the Indian retail market have been seen by many retail giants and thats the reason that many new players are entering the India retail industry. The major Indian retailers are: Pantaloons Retail India Ltd Shoppers Stop Bata India Ltd Music World Entertainment Ltd Judging the scope for growth in the India retail industry many global retail giants are also entering the Indian retail market. They are: Tesco Metro AG Wal- Mart The scope for growth in the Indian retail market is seen mainly in the following cities: Mumbai Delhi Pune Page 14

Ahmedabad Bangalore Hyderabad Kolkata Chennai The scope of the Indian retail market is very vast. And for it to reach its full potential the government and the Indian retailers will have to make a determined effort. The Indian retail industry accounts for 10% of GDP and 8% of employment. India is being touted as the next big retail destination with an average three year compounded annual growth rate of 46.64%.
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CORPORATE RETAIL SECTOR
Penetration of organized market: A matter of concern

The concept of organized retailing in India is not much old but there has been much hope over its future in India. People are confused (actually unaware) of its merits and demerits. This ignorance has been used by political parties to create different sensations to create political advantage. In this study we make an attempt to clearly point out the pros and cons of expansion of the organized retail sector beyond metros and the possible risk-averse ways of entering the suburbs and towns.
The present foray and its implications

According to The Great Indian Retail Story a report on the Indian retail sector published by Ernst & Young, 220 mall projects will come up by the end of 2007. The planned positioning of these malls are shown in the pie chart below. The diagram clearly depicts the bias of retail giants to set up shops in metropolitan areas. This failure to reach suburban dwellers will jeopardize the profit making motive of the retailers. As products are services are pure imitation of each other, the intense price battle among competitive retail owners will undermine the supernormal profits that could have otherwise accrued (known as the theory of Bertrand Oligopoly).
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An improper analysis of facts has further aggravated situation. and Capital The the state
government in Delhi NCR(National Region) has for
been lenient in granting permission commercial use of land whereas the local authorities in remote place have shown narrowmindedness. However according to economists, this roadblock can be overcome by franchising. The mega retail players can surely explore the opportunity of strategic partnership with domestic retailers. Let's now come to another debate that has generated much heat in the recent past but failed to ameliorate the situation. It is a well-known fact that agricultural growth rate is lagging at less than 4 percent (average annual growth rate for 2002-07 was 2.3 percent)and this rate must be increased to a stable 6 percent in order to attain the accolade of the fastest growing nation. According to the Ernst & Young report, the Food and Groceries comprises of 41 percent of private consumption expenditure and account for about 77 percent of total retail sales. So far so good, the pie diagram below shows the share of the sector in organized retailing. This diagram demonstrates that footwear has a whopping share in the organized retail market. But food and groceries, the leader in private consumption expenditure has a modest share of 1 percent in organized retailing. This is the channel that must be bettered. Organized retailing in the agricultural sector can do miracles in improving the revenue from it. Organized retailers face the Page 17

customers directly and thus can easily communicate the consumer's preferences and grievances to the producers in terms of both quality and quantity. This market information crucially affects producer's investment decisions and their risk domain. In addition, organized retailers have very large scope of operations and so can bring in cheap credit, insurance and other services to the poor farmers. Moreover removing the middlemen is akin to providing wide consumer base.
Penetration: Ways for improvement

Production comes before supply and sales comes after supply. This must be understood by retailers. It is imperative that they check out the supply chain management from vendors and the type of products that are in demand. This must be done without fail before setting up retail chains as A 5 percent reduction in customer defections can treble profits, according to Ranjan Biswas, Partner, Ernst & Young India. A lot of importance is attached to this because the climate as well as culture of India is diversified. Though India tops among its competitors for its attractive retail sector prospects, one wishing to build a retail outlet chain in India still has requires about 20-33 licences from governments at various levels. 'Single window clearance' was demanded recently by Retailer Association of India(RAI). This will help retailers to set up retail outlets without much hassles. Under the single window clearance system, it will be possible to get an application cleared within seven days and those already having an existing store in the state will be able to get a licence for opening a new one by merely applying and taking an extension. International retailers coming to India will set up shop in only those malls that are maintained at par with international standards. Proper mall management is urgent from the view point of Indian mall developers. Mall management includes not only right positioning(deciding on the product that the mall targets) but also includes proper tenant mix and zoning(placing the appropriate retailers at the ideal places inside the mall). Promotion, marketing and financial management are of no less importance. The organized retail sector in India is projected to grow at a CAGR(Compound Annual Growth Rate) of about 49.53 percent from 2006 to 2010 and FDI of 51 percent in single brand retailing will pave the red target for Indian retail in the coming years. Page 18

FDI in Indian Retail sector
The Government of India was initially very apprehensive of the introduction of the Foreign Direct Investment in the Retail Sector in India. The unorganized retail sector as has been mentioned earlier occupies 98% of the retail sector and the rest 2% is contributed by the organised sector. Hence one reason why the government was fearing the surge of the Foreign Direct Investments in India was the displacement of labour. The unorganized retail sector contributes about 14% to the GDP and absorbs about 7% of our labour force. Hence the issue of displacement of labour consequent to FDI is of primal importance. There are different viewpoints on the impact of FDI in the retail sector in India. According to one viewpoint , the US evidence is empirical proof to the fact that FDI in the retail sector does not lead to any collapse in the existing employment opportunities. There are divergent views as well. According to the UK Competition Commission, there was mass scale job loss with the entry of the hypermarkets brought about by FDI in the UK retail market. According to another school of thought, there is undoubtedly labour displacement associated with FDI, but employment generation will occur in different dimensions. Varied skills would be specialised. Taking into consideration the pros and cons of introducing FDI in India, ICRIER has recommended 49% of FDI . The opening up of FDI in India is also expected to be gradual so that the domestic industries can tailor themselves according to the changes. At the formative stage , the idea was to start with 26% of FDI in this sector. But soon the idea changed as China's FDI moved up from 49% to 100% in the retail sector.
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While the government is continuing its plans to liberalise FDI in the retail sector in India, foreign companies like Wal-Mart are waiting on the threshold. They basically wish to enter into partnership with various multinational chains. FDI would bring about modern infrastructure that would help to boost the productivity of the organised retail sector in India. Malls have mushroomed in various locations. They are the centres of entertainment for the new generation. FDI is not allowed in the retail sector and this is the reason why many prominent global players like Dominos, Levis, Lee, Nike, Adidas, TGIF, Benetton, Swarovski, Sony, Sharp, Kodak etc are entering the retail market via licensee or franchisee. The opening up of the economy to FDI in the retail sector is also expected to generate employment. FDI can be a blessing instead of curse only if it produces backward linkages relating to production and manufacturing. It may also, in the process help to push up domestic production as well as exports. In the present scenario, 51% Foreign Direct Investment is permitted in India only through single brand retailing. The international retailers are entering the matket through licensees just as Wal-Mart has entered through the franchisee, Bharti Enterprises.
Recent News on FDI in India

Metro AG and Shorite are already in operation. Foreign retailers are in search of investing in wholesale. Wal-Mart as we have mentioned has already joined the retail market of India. Geant is also expected to start its retailing operations soon in India hence we may conclude that FDI in retailing in India would require the creation of additional jobs to compensate the resulting job loss. It would result in the reduction in the Kirana shops and Retail Stores. The consumers can benefit from such exposures, it would enhance quality, improve on the supply chain, increase exports, so on and so forth. There are certain other issues that have discouraged Page 20

FDI in India and they are discussed as under.
Bottlenecks to FDI in Retail Industry

According to the Land and Property laws only the Indians have the right to land and property in India and this law has in a a way inhibited the entry of the foreign players in India. Again the labour laws are so designed that the store workers can be protected , quite contrary to the requirements of the modern formats. The tax structure of India is also unfavourable for the foreign players. The corporate tax rate for the domestic companies is 36.59% whereas it is 41.82% for the foreign companies. The changing sales tax as well as the Value Added Tax is also not favourable in the case of international companies.
Government Intervention in Indian Retail

India's government seems to be on a gradual retailers into the country.... suggests the A.T. but definite path toward allowing foreign Kearney's Retail Development Index 2006. It
is a common knowledge that the Union government has to face a number of hurdles both from it's opponents as well as it's allies before it could announce the final verdict. There have been demands from all corners regarding framing of rules to safeguard interests of the so-called small traders. Simultaneously economists have the consensus that industrialization is imperative for the growth of the economy and foreign investment has to play an inevitable role in it. With Lok Sabha elections to come in 2009, the Union government too seems a bit confused regarding decision in who's favor can provide it a political edge. So in this study let us compare the views for and against liberalization as is held by Indian Bureaucrats.
Entry of large players: stiff opposition from Left Parties

The recent outburst of fury among the Kerala's LDF(Left Democratic Front) Government has been noticeable. They have exacted for a three-pronged approach to prevent the retail giants from serving the Keralians. At the first stage, not only MNCs but also the local retail giants like Page 21

Reliance will be shown the red signal. In fact a magnified CPI protest has compelled a Reliance Fresh outlet in Kochi to take police protection. The draft of a bill has been finalized to amend the Kerala Essential Commodities Act so that the state government can intervene in the retail market. As a second step, local councils (70% of which is controlled by the Left) will deny licenses, that are mandatory to start a retail chain in the state. Kochi and Tiruvananthapuram corporations will be in fact commanded to reconsider the licenses of outlets that are already operating in the regions. This strategy grants more power to the state. However a ban on shopping in these outlets is still not clear. The third and the most revolutionary judgment is actually an outcome of the whole game. Government-controlled supermarkets and hypermarkets will be established in some of the key cities in the state. This rigid legal wall not only in Kerala but across the country has been born out of a traditional mindset. Kerala claims to have a literacy rate of 90.92% and a sex ratio of 1058 females per 1000 males. The data speaks for the government's prudent commitment in the case of Kerala. So it is high time that the government opens up avenues for its people to let them grow and become self dependent. But the government is still holding good, the conventional 'infant industry' outlook. The main worry is the negative impact on the already gloomy condition of employment. Let's make an attempt to understand the vicious circle of unorganized retailing and present employment scenario. Unorganized retailing has a share of about 96% in the Indian retail sector. But why should people work in such miserable situations if the manufacturing and services sector are booming is the overwhelming question. There has been a trend to migrate to cities in search of alluring bright city lights. But the consequences has been been even worse- earning lower than expected wages(Harris Todaro model of migration). The illiterate and unskilled people ultimately set up a grocery shop to earn a living. This gives birth to another unorganized retail shop in India and thus enlarges its share. So the unorganized retail market in India has born out of fate rather than selection.
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The Actual Scene

Those opposing the expansion of organized retail in India must understand that the share of primary sector shrinks and that of the secondary and then the tertiary sector expands as an economy grows. This is the basic structural adjustment in case of any transforming economy. India is at a take off stage. A retardation in the agricultural sector is not permissible but inhibiting the growth of services on grounds of protection to agriculture is more irrational. A proof of this has been seen in a small town of North Bengal. The opening of a Big Bazaar (brand name for stores under Pantaloon) departmental store has seen a human deluge of about 7,000 people in the 35,000 sqft shopping mall by 3pm. This clearly indicates that people (even in remote places) have become fed up of monotonous marketing practices and demand nowadays is purely governed by choice.
IT Trends in the Retail Sector in India IT in Retail: What's Hot

The Indian retailing, which has topped the charts for being the most favored and attractive destination is yet in its nascent stage. Neither the FMCG retailers are in a position to maintain world class standard, nor one wishes to be an iconoclast. The digitization of the Indian retail sector has captured the minds of retail magnets for quite some time now but has remained the grey area of the Indian story of retail sector. The Indian IT sector is growing at a rate of 31 percent and posted a record revenue of $40 billion in 2006-07. This is indeed a good news but the staggering domestic segment demanded services worth only $8.2 billion. In this study we focus on how e-retail can boost the plans of existing and forthcoming national retail players. We further try to put forth the challenges in computerisation of the organized retail and make an attempt to suggest some prospective solutions. Page 23
Traditional retail sector:

Why IT is the need of the hour? The organised retail sector of India will form about 10 percent of the total retailing business in India and is expected to worth US $70 billion by the end of 2010. in the mean time it will grow at a CAGR of around 49.53 percent. But certain speed breakers associated with the primitive form of retailing must be overcome to maintain its tempo. Unorganised retailing in India is ubiquitous and so the communication between the manufacturer and retailer is heavily dependent on the wholesalers, dealers and traders. This is more so because the retailers can't afford costly investments. So they ultimately have to suffer due to low participation market flow of commodities. Nowadays even the organised business houses are facing the problems related to SCM(Supply Chain Management). The SCM's huge emphasize on middlemen rather than on the retailers has aggravated the problem. The introduction of EDI (Electronic Data Interface) can deliver QR (Quick Response) and ECR (Efficient Consumer Response) systems to ameliorate the partnership channel and thus shorten the time between the placement of orders and delivery to occur. For eg. the 17 outlets of FoodWorld are linked online with its central manufacturing house at Chennai. The scale and process complexity are also of paramount importance as millions of customers deal with thousands of retail outlets. At the end of the day the total number of transactions is in the order of hundreds of millions. This makes keeping track of the money movement an onerous job. The spread of the planning cycles and huge geographical dispersion makes the task more arduous.
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Retail operations:
How does Information Technology hel India has seen a retail boom in the last five years. This has helped the sector grow to a size of Rs. 8,10,000 crores. IT can and has to play a substantial role in this flourishing industry to keep up the vigour as well as to make it globally competitive. It can happen in many ways: Retailing in a large country like India is basically a multi-plant and multi-market activity. It is almost if not actually impossible to handle the diversified operations. Introduction of IT can make things easier and the node can be immensely useful in managing the complexities. Advanced planning and scheduling and inventory management are inevitable to any growing retail sector. Besides, merchandising and seasonality management systems can drastically change the fortune of retail sector in India. To improve penetration and enhance quality of services, data mining and top-class forecasting has no substitutes. Understanding consumer needs and collaborating with suppliers are essential parts of merchandising activities. A logical interpretation of data is fundamentally important to make decision, specially when one is looking forward to establish a new retail chain. These help in modifying revenues and cutting down costs, the two dimensions of an upward-moving profit curve. Data-cleansing and re-architecture also help in making effective decisions. It is fully justified that all the retail institutions as well as the manufacturer and all distribution centers be linked Online to ensure EDI of the server installed in the market with the EPOS (Electronic Point Of Sale). However the retailers should carefully choose the IT service provider as global researches have shown that global IT expenditure in the retail sector is growing at 13 percent whereas the revenues has grown at a mere rate of 2 percent. The maintenance costs are also quite high owing to the different technology platforms for fragmented point solutions. Page 25

Opportunities of the Western Retailers in India
The retail industry in the western countries no way of expanding. In this backdrop the have reached a point of saturation and there is retail giants are trying to make their mark in
the retail market of countries that still have untapped potential of expansion. India happens to be one of them. AT Kearney has constructed the Global Retail Development Index which has helped the western retailers to identify the countries in which investments could be made. Opportunities in India have attracted the western retailers like Wal-Mart, Euroset, Supervalu who have plans to enter as single branded retailers . In gauging whether to enter, the companies keep into account the timing factor, that is whether the consumers are ready to accept the products that are offered by them. It is highly possible that there are potentials in the market but the consumer preferences are skewed against the products that are offered. Certain parameters have been included in the construction of the Global Retail Development Index and given weightage which have been shown in the following figure. Table1: Parameters in the Construction of GRDI Parameters Country Risk Market Attractiveness Market Saturation Time Pressure Each of the parameters may be explained as under. Weightage 25% 25% 30% 20%
Country Risk:
Country risk arises from political risk, poor debt management, low credit ratings and access to bank finance. Country risk also have their origin from business risk arising from terrorism, corruption and violence.
Attractiveness of Market
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This is measured by retail sales per capita. If the score is zero in this parameter, then it clearly hints to a highly underdeveloped retail sector. On the other hand a cent percent score would indicate that the retail sector has reached the point of saturation. Weightage is also given to population, urban population and business efficiency. The more the population and urban population more will be the prospect for growth. By business efficiency we mean the quality of infrastructure. Higher the quality of infrastructure, higher will be the ease of business operations.
Market Saturation
To understand the market saturation level, importance is to be given to the share of modern retailing, number of international retailers, the sale of retail per urban inhabitant and the market share of the top retailers.
Time Factor
The time factor as measured by CAGR has a weightage of 20% in the construction of GRDI.
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E-RETAILING IN INDIA
E-retailing, most commonly known as eInternet and other media forms. There are maintain a relationship with the suppliers. Bottlenecks Faced By E-Retailing in India
tailing is nothing but shopping through the many things that are common between direct
retail stores and online retail stores. Both have the process of billing of the customers and have to
Problems with the Payment System

People in India are not used to the online shopping system and moreover the online payment system through the credit card is also totally alien to them. Most of them do not avail of the transaction facilities offered by the credit cards. They are also dubious regarding the online payment system through the credit cards. Hence different payment options should be made available to them like the credit card, cash on delivery and net banking to give them further assurance.
Problems with Shipping

The customers using the online shopping channel should be assured that the products that they have ordered would reach them in due time. For this the retail companies have resorted to private guaranteed courier services as compared to postal services. Offline presence The customers should be assured that the online retailers are not only available online but offline
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as well. This gives them the psychological comfort that these companies can be relied upon.
Products offered at discounted rates

The online retailers save on the cost of building and employee salaries. Some part of this benefit should also be enjoyed by the online customers by a reduction in the price of the product. The customers should be conveyed this message that they are getting the products at a discounted price.
Language Problem
Most internet retail shops use English as their mode of communication. English may not be comprehensible to the majority of the Indian population . To increase the customer base, content in the online retail shops should be provided in local language. Another reason why the concept of e- retailing or online retailing has not gained prominence in India is that the Indians prefer to touch the products physically before buying them. This facility is provided through the multi-brand outlets, not available online. Studies have revealed the preferences of the customers towards the traditional shopping methods. Hence the retailer online should first make it a point to spot the potential customers and accordingly plan out the product. If the customers are more open to online shopping, then nothing can be more beneficial. They save the time and effort to visit, departmental stores, shopping malls, etc. products can be delivered by a click of the mouse. Another problem is that the retail industry is standing on its point of inflexion and considering its infant stage, it would take time for the new concept of e-retailing to take off.
Some online retailing sites in India
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E Bay is heading the race of online retailers. In this race it has become very difficult to determine the online retail store that makes the products available at convenient and cheap rates. From this very difficulty has cropped up comparison sites. Comparison is done on the basis of an index which is constructed from the data available from different shopping sites. The bechna.com and the ultop.com are such sites though many more sites are entering this zone.
The comparison sites not only help to choose the online sites that would be providing the best deal but also offline as well. Sites like Rediff product search, Compare India.com have constructed the data that is taken from the conventional local retailers. These sites help the customer in finding out the local retail store that will best suit his purpose.
Future of E-retailing in India

There are divergent views on the future of e-retailing in India. Some experts are of the opinion that the giant, big brand retailers would dominate the small ones due to their wider investment capacities. It would be next to impossible for the small retailers and the kiranas to prove their existence in the battlefield of online retailing. Another viewpoint is that there would be an exponential growth in the online retailing business in India.
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TOP COMPANIES IN THE RETAIL SECTOR The India retail industry: who's who
The Indian retail sector has been a euphoria over the last five years. India topped the A.T. Kearney's Global Retail Development Index for two consecutive years and this has infatuated Indian as well as foreign retail players to go gaga on the merchandising track. According to geographical expansion, Delhi/NCR and Mumbai are the felicitated regions as the top companies have rated the spending potential of consumers in the vicinity of the national capital and the financial capital as excellent. Other metros such as Kolkata, Chennai, Hyderabad and Bangalore have caught the sight of investors but their fortunes are yet to be illuminated. Companies like The Future Group, Reliance, Bharti-Walmart, DLF etc. have shown the way for other to enter. The country is expecting a surge in the growth sprint and let's hope for the best.
Top Companies: An analysis Big Bazaar - Big Bazaar is a chain of department stores owned by the Pantaloon Group
(Future Group)and headed by Kishore Biyani and headquartered at Mumbai. It offers all types of household items such as home furnishing, utensils, fashion products etc. It has a grocery department and vegetable section known as the Food Bazaar and its online shopping site is known as FutureBazaar.com. The real estate fund management company promoted by the Future Group expects to develop more than 50 projects across India covering a combined area of more than 16 million sq. ft. On April 1 2007, Big Bazaar had to shut its outlets in Mumbai as the 120 retrenched employees called a strike with the support of Bhartiya Kamgar Sena (the trade Union wing of Shiv Sena). Later the management agreed to reinstate the sacked workers. Page 31
Bharti Retail - A wholly owned subsidiary of Bharti Enterprises. has announced two joint
ventures (JV)with the international retailing behemoth, Wal-Mart. The first JV ensures cash and carry business, in which 100 percent FDI is permitted and it can sell only to retailers and distributors. The second JV concerns the franchise arrangement. Sunil Mittal, Chairman of the Bharti Group assured that the ventures will use low prices every day and best practices for the satisfaction of the customer. Processed foods and vegetables will be delivered by Bharti Field Fresh, Bharti's JV with Rothschild. Bharti Retail aims to foray every city with a population exceeding 1 million. It has plans to come up with an investment of more than $2 billion in convenience stores, supermarkets and hypermarkets spread over an aggregate 10 million sq. ft. The expansion drive looks ambitious but analysts are worried that Bharti may face stiff competition from Pantaloon and Reliance as they too have sanguine plans to flood the markets with thousands of retail outlets in the coming five years. Bharti Telecom also has plans to offer all its fixed and mobile telecom products and services from a single window to the SMB (Small and Medium Business) enterprises under the Bharti Infotel division.
Reliance Retail - Reliance claimed last year to start a retail chain that will be unique in size
and spread, will lead to the welfare of one and all ranging from Indian farmers, manufacturers and ultimately consumers. It is known as Reliance Retail Ltd.(RRL) and is a 100 percent subsidiary of Reliance industries Ltd.(RIL). Soon after the Bharti-Wal Mart tie up, there was the news that RIL (Reliance Industries Ltd.) Chairman Mukesh Ambani met Commerce Minister Kamal Nath to discuss the apprehension of cheap imports from China. Reliance Retail has plans to open 4,000 outlets across 1,500 towns for an investment of $5.6 billion. Reliance is not away from agro-business. According to Buddhadeb Bhattacharjee, Chief Minister of West Bengal, Reliance will hold demonstration farming, produce good quality seeds and give inputs to farmers. Its most significant participation has been in the food procurement business in Madhya Pradesh and Punjab. This has in fact compelled the government to import wheat this year. Page 32

Reliance Retail has also been reported to have entered into an agreement with footwear manufacturer Bata India Ltd. so that they will involve in selling each other's products.
DLF Shopping Malls - DLF Retail Developers Ltd. is one of the troikas of the DLF Group.
Besides being India's largest real estate developer, DLF is also of the leaders in innovating shopping malls in India. It caught public eye when it launched the 2,50,000 sq ft. shopping mall in Gurgaon. It has brought a dramatic change in the lifestyles and entertainment with its City Centres and DT Cinemas. DLF has plans to invest Rs. 2000-3000 crore in all the emerging areas from metros to A class cities in the next two years. Till last year the company was involved in building 18 malls out of which 10 were in the NCR region. Future plans of DLF involve opening up of 100 malls (speciality malls, big box retailing and integrated malls) across 60 cities in next 8-10 years. They are slowly transforming into 'lease' and 'revenue share' models. Local players like ITC, the A.V. Birla Group and Tatas have given the hints to enter organised retail. Frances Carrefour SA and Britains Tesco too were recently in news for their future plans to explore the Indian retail market.
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SWOT OF THE INDUSTRY
Strength
Demographic favor Rising disposable income Increase in number of people in earner category. Urbanization Shopping convenience Low labor cost of skilled ones. Changing consumer habits and lifestyles. Plastic card revolution.
Greater availability of quality retail space.
Weakness
Policy related issues lack of industry status for retail. numerous licence,permits and registration requirement. -farmer and retailer unfriendly APMC act. -lack of detailed region specific customer data. -less data on spending pattern. lack of trained personnel at all level. stringent employment and industry laws. Page 34
Limited consumer insight
Inadequate human resources

Taxation hurdle -inconsistent octori and entry tax structure. -vat and multiple taxation issues. -large grey market presence. Underdeveloped supply chain -underdeveloped logistics infrastructure. -absence of national cold chain networks. -lack of national distribution networks and hubs Lack of adequate utilities lack of basic infrastructure like power, transport and communication creates difficulty in sustaining retail operations across the large geographical spread of country.
Oppurtunity
Potential for investment. Locational advantage. Sectors with high growth potential. Fastest growing formats. Rural retail. Wholesale trading. Falling real estate cost E-retailing Retail franchising
Threat
Political issues. Social issues. Inflation. Nostalgia Lack of differentiation among the malls that are coming. Page 35

Poor inventory turns and stock availability measures.
CHAPTER-II
C OMPANY P ROFILES
History of the Company Founders Profile Companys Profile Organisation Structure Product Profile Marketing Strategies Present Market Share Future Strategies Financial Information Achievements and Recognition
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BIG BAZAAR
FUTURE GROUP
uture Group (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 12 million square feet of retail space, has over 1000 stores across 71 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, www.futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a largeformat home solutions store, Collection i, selling home furniture products and eZone focussed on catering to the consumer electronics segment. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the USbased National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.
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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 12 million square feet of retail space in 71 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 startegy that captures almost the entire consumption basket of Indian customers. In the lifystyle 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. In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, Hyderabad and Bangalore. The groups speciality retail formats include, books and music chain, Depot, sportswear retailer, Planet Sports, electronics retailer, Ezone, home improvement chain, Home Town and rural retail chain, Aadhar, among others. It also operates popular shopping portal, futurebazaar.com.
Future Group Manifesto

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. Page 38

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. 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. It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing.
Rewrite Rules. Retain Values. Group Vision

Future Group shall deliver Everything, Everywhere, Everytime for Every Indian Consumer in the most profitable manner.
Group Mission
We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.
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BIG BAZAAR
Big Bazaar, the major retail chain of hypermarkets from the Kishore Biyani-promoted Future Group, has plans to open 48 new hypermarkets in Maharashtra, including Malad, Ghatkopar, Solapur and Pune, in the next two years. Big Bazaar has set the sales turn over target of Rs. 5,500 crore for the current FY 2008-09. Big Bazaar on Wednesday (December 24) opened its second hypermarket in Nashik. Presently, Big Bazaar has 103 hypermarkets in 62 cities across the country, including 23 in Maharashtra. The new second hypermarket in Nashik offers 41,000 sq ft retail space and the company has invested around Rs. 3 crore (excluding the property cost) in this hypermarket. While elaborating companys expansion plans to Business Standard, Sharad Venkat, Business Manager (country), Big Bazaar said, We are planning to open 240 new hypermarkets across the country in the next two years (by 2010-11). Out of which, 20 per cent (48 stores) hypermarkets will be opened in Maharashtra alone and these 48 hypermarkets will cover a total carpet areas of 2.4 million sq ft. By March 2009, Big Bazaar will open hypermarkets each in Ghatkopar, Malad and Solapur in Maharashtra. Proposed hypermarket in Malad and Ghatkopar will cover carpet areas of 1 lakh sq ft and 60,000 sq ft, respectively, while hypermarket at Solapur will have a carpet area of 40,000 sq ft., he said. Big Bazaar presently has 6 hypermarkets in Pune. We are also planning few more hypermarkets in Pune and we are in the process of identifying land/properties there, Venkat added. Big Bazaar registered sales turn of Rs. 3,700 crore during the FY 2007-08 and has set the sales turn over target of Rs. 5,500 crore for the current FY 2008-09. Big Bazaar hypermarkets display over 1.6 lakh products in various categories, including apparel, general merchandise, food, non-food, fruits and vegetables, electronic, furniture, books music and stationery, mobiles, health zone, crockery, dry fruits, watches & sunglasses, catering to every single household needs of a family.
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FOR THE GREAT INDIAN MIDDLE CLASS Kishore Biyani led the companys foray into organized retail with the opening up of the Big Bazaar in the year 2001. It is a unit of Pantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. It was started as a hypermarket format in Mumbai with approx. 50,000 sqft of space. Its values and missions are to be the best in Value Retailing by providing the cheapest prices and hence goes the tag-line
Is se sasta aur achcha kahin nahin

It sells variety of merchandise at affordable rates, the prices of which it claims are lowest in the city. Usually the items are clubbed together for offers as on the lines of Wal-mart and Carrefour and it also offers weekend discounts. It currently operates out of more than 100 stores and top 25 stores register a cumulative footfall of 30 lakh a month on an average.
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BOARD OF DIRECTORS
Mr. Kishore Biyani, Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group.
Mr. Gopikishan Biyani, Whole time Director
Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in the textile business.
Mr. Rakesh Biyani, Whole time Director
Rakesh Biyani, is a commerce graduate and has been actively involved in category management; retail stores operations, IT and exports. He has been instrumental in the implementation of the various new retail formats.
Mr. Vijay Kumar Chopra, Independent Director
V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His banking career spans over 31 years and he has served senior management positions in Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.
Mr. Shailesh Haribhakti, Independent Director
Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and past president of Indian merchant Chambers. He is on the Board of several Public Limited Companies, including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. Page 42

etc. He is on the Board of Company since June 1, 1999.
Mr. S Doreswamy, Independent Director
S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India and serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited among others.
Dr. D O Koshy, Independent Director
D. O. Koshy, holds a doctorate from IIT, Delhi and is the Director of National Institute of Design (NID), Ahmedabad. He has over 24 years of rich experience in the textiles and garment industry and was instrumental in the setting up of NIFT centres in Delhi, Chennai and Bangalore. He is a renowned consultant specializing in international marketing and apparel retail management.
Ms. Bala Deshpande, Independent Director
Bala Deshpande, is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing Ltd, among others.
Compaies And products :

Home Solutions Retail (India) Limited Future Brands Limited Future Media (India) Limited Future Logistic Solutions Limited Future Axiom Telecom Limited Pantaloon Food Product (India) Limited Future Knowledge Services Limited Future Capital Holdings Limited Page 43

Future Generali India Insurance Company Limited Future bazaar India Limited Staples Future Office Products Private Limited
Big Bazaar is not just another hypermarket. 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. At Big Bazaar, you will definitely get the best products at the best prices - thats what we guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping expereince.
The present Market Share of Big Bazaar is 25%
MARKETING 4 Ps
Product:
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Pricing:
Value Pricing (EDLP) Promotional Pricing Low Interest Pricing Page 45

Psychological Pricing Special Event Pricing (Festivals) Differentiated Pricing Time Pricing
Bundling
BUNDLING
TIME PRICING
LOW INTEREST FINANCING
PSYCHOLOGICAL
PRICING
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Place:
Place means the location of the business. Big Bazaar has always worked on low-cost locations. It targets semi-urban population with its placement. Its strategy is to find a cheap location and it never goes for hot spots in the city. The talk with the manager revealed that the Teghoria store was opened when it was scarcely populated. Even in Gurgaon, Big Bazaar chose Sahara Mall instead of Metropolitan or City Centre, which are more popular than Sahara Mall. It relied on promotional activities to make up for unattractive locations. The channel of place is company owned stores to have complete control. Another strategy used by Big Bazaar to overcome location disadvantage is use of internet. It has launched a merchandise retailing website www.futurebazaar.com which targets high-end customers ready to use credit cards. Therefore Big Bazaar has made headway into a potentially high-yielding sector of online trade. Internet as place has put them in a profitable position because there is minimal expense of maintaining a website. The promotion of this website is done through advertisement on Google. The website is put as sponsored link.
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PROMOTION
SAAL KE SABSE SASTE 3 DIN FUTURE CARD (Discount Upto 3%) SHAKTI CARD JUNK SWAP OFFER BRAND AMBASSADOR: M.S. DHONI ADVERTISMENT (Print Ads, T.V., Radio) POINT OF PURCHASE PROMOTION GIFT TO EVEY 100th CUSTOMER (Seasonal) 32 TELEVISION--Rs. 22990/- (EXCHANGE OFFER) PORTABLE METAL BED Rs. 3199/ BUY 21 TELEVISION FLAT Rs. 4999/- AND GET DISH TV SET TOP BOX FREE. BUY RED LABELTEA 950 GM Rs. 258/- AND 2 Kg SUGAR FREE. BUY 2 MENS JEAN FOR Rs. 599/- only.
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Saal Ke Sabse Saste 3 Din (Republic Day) Junk Swap Offer
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Page 50
Jun ' 08 Income : Operating Income Expenses Material Consumed Manufacturing Expenses Personnel Expenses Selling Expenses Adminstrative Expenses Expenses Capitalised Cost Of Sales Operating Profit Other Recurring Income Adjusted PBDIT Financial Expenses Depreciation Other Write offs Adjusted PBT Tax Charges Adjusted PAT Non Recurring Items Other Non Cash adjustments Reported Net Profit Earnigs Before Appropriation Equity Dividend Preference Dividend Dividend Tax 5,295.88 3,556.21 100.66 275.78 372.54 527.28 0.00 4,832.47 463.41 30.93 494.34 201.45 83.39 0.00 209.50 69.68 139.82 -13.88 0.03 125.97 341.73 10.67 0.00 1.81
Jun ' 07 3,393.47 2,239.53 78.15 207.74 291.72 358.38 0.00 3,175.52 217.95 4.36 222.31 95.93 36.86 0.00 89.52 60.96 28.56 91.49 -0.06 119.99 236.58 7.54 0.00 1.28
Jun ' 06 1,960.86 1,268.15 58.96 112.72 170.07 198.69 0.00 1,808.58 152.28 3.93 156.21 43.22 20.82 0.00 92.18 27.67 64.52 -0.25 -0.11 64.16 130.66 6.72 0.00 0.94
Jun ' 05 1,084.11 716.49 37.48 50.75 90.71 104.20 0.00 999.63 84.48 3.31 87.78 26.08 13.33 0.12 48.24 14.54 33.71 4.79 0.05 38.55 76.63 5.50 0.00 0.77
Jun ' 04 655.00 445.67 19.19 27.61 52.09 57.30 0.00 601.86 53.14 1.44 54.58 20.03 8.79 0.13 25.63 4.56 21.07 -0.73 -0.56 19.78 54.03 2.87 0.00 0.38
Profit And loss Statement
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Balance Sheet
(Rs in crore)
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Jun ' 08 SOURCES OF FUNDS Owner's Fund Equity Share Capital Share Application Money Preference Share Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans Total USES OF FUNDS Fixed Assets Gross Block Less : Revaluation Reserve Less : Accumulated Depreciation Net Block Capital Work-in-progress Investments Net Current Assets Current Assets, Loans & Advances Less : Current Liabilities & Provisions Total Net Current Assets Miscellaneous expenses not written Total Note : Book Value of Unquoted Investments Market Value of Quoted Investments Contingent liabilities Number of Equity shares outstanding (in Lacs) Jun ' 07 Jun ' 06 Jun ' 05 Jun ' 04
31.86 63.26 0.00 1,751.5 0 1,991.7 7 200.01 4,038.4 0
29.35 0.01 0.00 1,062.8 2 951.93 347.65 2,391.7 6
26.88 0.00 0.00 500.02 428.10 173.29 1,128.2 9
22.00 3.00 0.00 196.53 256.17 30.04 507.74
19.14 0.00 0.00 75.75 215.29 21.36 331.54
1,368.7 6 0.00 170.59 1,198.1 7 330.64 586.52
767.07 0.00 92.47 674.60 131.13 252.01
366.01 0.00 56.58 309.43 86.06 140.62
251.10 0.00 37.36 213.74 15.79 31.92
184.71 0.00 24.32 160.39 14.44 5.26
2,655.7 6 732.69 1,923.0 7 0.00 4,038.4 0 507.91 1,114.0 4 133.44 1,592.9 2
1,751.4 4 417.42 1,334.0 2 0.00 2,391.7 6 243.12 27.44 160.57 1,467.5 1
884.12 291.94 592.18 0.00 1,128.2 9 131.73 38.99 36.66 268.85
405.17 159.16 246.01 0.28 507.74 23.08 31.80 5.06 219.98
234.49 83.45 151.05 0.40 331.54 5.22 0.24 5.19 191.37
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Achievements
2003 Indian Express Award (PRIL Marketing Excellence and Excellence in Brand Building) Indusland Bank (PRIL - Excellence in Brand Building) 2004
Images Retail Awards 2004
(PRIL- Most Admired Retailer of the Year) (Food Bazaar- Retailer of the Year(Food and Grocery) (Big Bazaar-Retailer of the Year-Value Retailing) (Central-Retail Launch of the Year)
Reid & Taylor and DLF Awards
(PRIL - Retailer of the year) 2005 Images Retail Awards 2005 (PRIL- Most Admired Retailer of the Year ) (Food Bazaar- Retailer of the Year(Food and Grocery) (Big Bazaar-Retailer of the Year(Value Retailing) (Central-Retail Launch of the Year)
Voted by Business Today magazine as one of the (Top 20 Companies in India to watch in 2005) (Indias most investor-friendly companies in the top 75) (Indias Biggest wealth creators in the top 100) Page 54
DAKS London (PRIL- Brand Builder of the Year)
2006
Retail Asia Pacific Top 500 Awards
(Asia Pacific Best of the Best Retailers Pantaloon Retail (India) Ltd) (Best Retailer in India Pantaloon Retail (India) Ltd)
Asiamoney Awards
(Best Managed Company in India (Mid-cap) Pantaloon retail (India) Ltd.)

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
(Young Business Leader Kishore Biyani)

Images Retail Awards
(Best Value Retail Store Big Bazaar) (Best Retail Destination Big Bazaar) (Best Food & Grocery Store Food Bazaar) (Retail Face of the Year Kishore Biyani)
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Readers Digest Awards
(Platinum Trusted Brand Award - Big Bazaar)

CNBC Awaaz Consumer Awards
(Most Preferred Large Food & Grocery Supermarket Big Bazaar)

Reid & Taylor Awards for Retail Excellence
(Retail Entrepreneur of the Year Kishore Biyani) 2007

Images Retail Awards
(Most Admired Retail Face of the Year: Kishore Biyani) (Most admired retailer of the year: Large format, multi product store: Big Bazaar) (Most admired retailer of the year: Food and Grocery: Food Bazaar) (Most admired retailer of the year: Home & office improvement: HomeTown) (Most admired Retail Company of the year: Pantaloon Retail (India) Ltd.)
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)
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PC World Indian Website Awards
(Best Indian Website In The Shopping Category - Futurebazaar.com)

Readers Digest Trusted Brands Platinum Awards
(Trusted Brands Platinum Award (Supermarket Category) Big Bazaar) 2008

Indian Retail Forum Awards 2008
(Most Admired Retail Company of the year - Future Group) (Retail Face of the Year - Kishore Biyani) (Best Retailer Of The Year ( Hypermarket) - Big Bazaar)
The INDIASTAR Award 2008
(Food Bazaar: Best Packaging Innovation)

Retail Asia Pacific 500 Top Awards 2008
(Gold Winner -Top Retailer 2008 Asia Pacific)

Coca-Cola Golden Spoon Awards 2008
(Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani) (Most Admired Food & Grocery Retailer of the Year Supermarkets: Food Bazaar) (Most Admired Food & Grocery Retailer of the Year - Hypermarkets: Big Bazaar) (Most Admired Retailer of the Year - Dynamic Growth in Network Expansion across Food, Beverages & Grocery: Future Group) (Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: Big Bazaar)
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The Reid & Taylor Awards For Retail Excellence 2008
(Retail Leadership Award: Kishore Biyani) (Retail Best Employer of the Year: Future Group) (Retailer of The Year: Home Products and Office Improvements: HomeTown) 2009 Images Fashion Forum 2009 (Most Admired Fashion Group Of The Year - Future Group) (Most Admired Private Label - Pantaloons, the lifestyle format) (Critics Choice For Pioneering Effort In Retail Concept Creation Central)
Coca-Cola Golden Spoon Awards 2009
(Most Admired Food & Grocery Retailer Of The Year) (Most Admired Food Court) (Most Admired Food Professional)
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Competitors The major players in the market are Wal Mart : Wal-Mart Stores, Inc. (branded as Walmart) is an American public corporation
that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue, according to the 2008 Fortune Global 500. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and listed on the New York Stock Exchange in 1972. Wal-Mart is the largest private employer and the largest grocery retailer in the United States. It also owns and operates the Sam's Club retail warehouses in North America. Walmart operates in Mexico as Walmex, in the United Kingdom as Asda, and in Japan as Seiyu. It has wholly owned operations in Argentina, Brazil, Canada, and Puerto Rico. Wal-Mart's investments outside North America have had mixed results: its operations in South America and China are highly successful,
Reliance Retail- Reliance claimed last year to start a retail chain that will be unique in size
and spread, will lead to the welfare of one and all ranging from Indian farmers, manufacturers and ultimately consumers. It is known as Reliance Retail Ltd.(RRL) and is a 100 percent subsidiary of Reliance industries Ltd.(RIL).
DLF Shopping Malls- DLF Retail Developers Ltd. is one of the troikas of the DLF Group.
Besides being India's largest real estate developer, DLF is also of the leaders in innovating shopping malls in India. It caught public eye when it launched the 2,50,000 sq ft. shopping mall in Gurgaon. It has brought a dramatic change in the lifestyles and entertainment with its City Centres and DT Cinemas. DLF has plans to invest Rs. 2000-3000 crore in all the emerging areas from metros to A class cities in the next two years.
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Westside- The company has a turnover of Rs. 357.6 crores (FY 2005-2006) and currently
operates 36 stores in the major metros and mini metros of India. An international shopping experience, a perception of values, and offering the latest styles, has created a loyal following for Westside's own brand of merchandiseWestside was named the 'Most Admired Large Format Retail Chain of the Year' by the Lycra Images Fashion Awards 2005
Marks & Spencer- Marks & Spencer (M&S) is a major British retailer, with over 885
stores in more than 40 territories around the world, over 600 domestic and 285 international.[1][2] It is the largest clothing retailer in the United Kingdom, as well as being a food retailer, and as of 2008, the 43rd largest retailer in the world.[3] Most of its domestic stores sell both clothing and food, and since the turn of the century it has started expanding into other ranges such as homewares, furniture and technology. In 1998 it became the first British retailer to make a pre-tax profit of over 1 billion,[4] though a few years later it plunged into a crisis which lasted for several years. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Shoppers Stop- Shoppers Stop is an Indian department stores promoted by the K Raheja
Corp Group (Chandru L Raheja Group), started in the year 1991 with its first store in Andheri, Mumbai [2] Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona, on April 10, 2008.
[3]
Shoppers Stop is listed on the BSE. [4] With the launch of the Navi Mumbai departmental store,
Shoppers Stop has 27 stores in 12 cities in India
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The Present Scenario of Big Bazaar
The above graph shows that the Big bazaar is still at its Growth stage, theres a lot of time for Big Bazaar go to the next stage that is Maturity and Decline stage.
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Marketing strategy
Customer oriented
1. Attracting and retaining customers 2. Uses non-traditional marketing strategy 3. Behavioral psychology 4. Moving demo-trolley 5. Used young population as strategic blessings 6. Movie centric promotions 7. Regular interesting offers/discounts 8. Spot discounts 9. Night shopping culture 10. Occasions based services 11. Babys day out promo 12. More organized floors
Employee oriented
1. Consider biggest assets 2. Employee welfare trust 3. Employee growth /training programs 4. PRERNA the employee suggestion plan 5. Standardization of staff room 6. Up gradation for education 7. Internal publications- Pragati Page 62
Future Strategies
Are in the process of constant evolution and firmly believe in creating the present, with the future in mind.Have only one vision-to capture the highest share of the consumers wallet. This is what has led us to believe that apart from our core strengths in fashion, food and general merchandise, we will operate through various formats in other lines of businesses; complete home solutions, leisure & entertainment, wellness, communications and financial products. They also have two AMCs. One that specializes in Property and the other is a Consumer India Fund. The property fund aims at sourcing high quality property at the lowest possible rates, while the consumer fund will look at providing our retail pipeline and expertise to national and regional brands, thereby enabling them with a wider coverage. 1. The Kishore Biyani-led Future Group is all set to foray into real estate business for building ready-to-move-in houses. The company has informed that it has signed 50:50 joint venture with Kolkata-based developer Sumit Dabriwal, to incorporate FH Residencies, for 'branded apartments' that would be available at an 'affordable' cost. The latest move was considered as a part of the company's strategy to achieve a turnover of Rs 13,000 crore by July 2011. Beside this, Future Ventures, is reportedly in the final stages of announcing its initial public offering (IPO) within the next 30 days. Earlier the company had deferred the IPO due to global slowdown and economical crisis. The company also plans to raise additional long term funds up to Rs 1,000 crore in one or more tranches through issuance of securities to various investors
2. For one, the Future Group's retail chain Big Bazaar is itself is planning to have 300
hypermarkets in the country by 2010-11 . The company may also increase its annual turnover to Rs 13,000 crore by 2010-11 , up from Page 63

Rs 3,600 crore last fiscal on the back of its expansion. They had reported begun with their first store in October 2001 and till date have crossed the 100-store mark. This was capped with three stores that opened recently in Pune, Cuttack and Delhi. The company's top brass plans to increase the number of stores to 300 by end of the 2010-11 fiscal.
3. Big Bazaar, the largest retail chain of Future Group, is eyeing a turnover of Rs 8,000 crore by the next financial year. The company hopes to achieve this mark by mutliplying the number of stores and implementing cost-cutting measures. Speaking on the sidelines of Images Fashion Forum in Mumbai, Kishore Biyani, CEO, Future Group, said, We want to introduce new value culture, manage operating costs better and boost profitability of Big Bazaar. Hence, we have hived off the business. However, to fund our expansion, we are not looking at listing Big Bazaar. Recently, Pantaloon Retail, the groups listed entity, decided to hive off four business divisions, including Big Bazaar and Food Bazaar, into separate companies. The company is now looking at openining a total of 300 Big Bazaar stores and has introduced the neighbourhood concept of retail, opening stores in residential areas. It will also introduce new business segments such as health and wellness in its stores. Biyani further stated that Big Bazaar would focus on kanjussi culture, a term he used to explain the companys focus on identifying areas to cut costs. The organisation has adopted a new philosophy garv se kaho hum kanjus hain, he said, explaining the idea. The concept focuses on cutting intermediate layers and passing the benefit to customers. Big Bazaar is estimated to end this financial year with a turnover of Rs 4,000 crore and expects to double it over the next year. The company was also looking to create more buying occasions, he said. For example, on Republic Day, Big Bazaar achieved a sales of Rs 240 crore compared with Rs 150 crore in the Page 64

previous year. There is a need to drive consumption by creating newer buying occasions because traditional festivals can no longer remain the sole purchase drivers, he said. Three years ago Big Bazaar introduced discount sales on the Republic Day, which was well received by the countrys youth. For instance, this year, Big Bazaar sold 1,38,000 pairs of jeans and 38,000 cell phones during the Republic Day offer. 4. They are also planning to open 58 new big bazaars in Maharastra.
5. Big Bazaar is planning to have 300
hypermarkets in the country by 2010-11. The
company may also increase its annual turnover to Rs. 13,000 crore by 2010-11, up from Rs. 3,600 crore last fiscal on the back of its expansion. The company has also gone on record saying that it would have another 35 stores by the end of its fiscal in June 2009 to take the total number to 135. To achieve this they are targeting a turnover of Rs. 5,000 crore in the current fiscal year and have formulated plans for reaching a figure of Rs. 13,000 crore by 2010-11 fiscal. For the expansion, the company would be looking at both the metros and Tier I cities, besides Tier II cities & smaller cities. The marketing strategy seems to be perfectly on track as the Big Bazaar hypermarkets had a footfall of 11 crore last fiscal and the company is aiming for an increase in the numbers up to 14 crore this year. The average size of a Big Bazaar hypermarket is 30,000 sq ft to one lakh sq ft.
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MARKS & SPENCER
History
Early years
The company was founded by Michael Marks, a Polish immigrant from Slonim, in 1884 as a single market stall in Leeds. After Thomas Spencer joined the company in 1894 it was known as 'Marks and Spencer'. The site of the first stall is marked with a green and gold commemorative clock in Leeds Kirkgate Market. One of the original Penny Bazaars - in the Grainger Market, Newcastle upon Tyne - remains open to this day, and is now the smallest M&S store in operation. Marks and Spencer, known colloquially as "Marks and Sparks", "Markses", or "M&S", made its reputation in the 20th century on a policy of only selling British-made goods. It entered into long term relationships with British manufacturers, and sold clothes and food under the "St Michael" brand (trademark registered in 1928), a name which honours its co-founder Michael Marks. It also accepted the return of unwanted items, giving a full cash refund if the receipt was shown, no matter how long ago the product was purchased. It adopted a 90-day returns policy in 2005 but on the 12th of April 2009 the refund policy changed once again to 35 days. This is still the most generous refund period on the British high street.
From 1950 to 1997

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By 1950, all goods were sold under the St Michael label. M&S lingerie and girlswear were branded under the "St Margaret" label until the whole range of general merchandise became St Michael. Simon Marks, son of Michael Marks, died in 1964, after 56 years' service. Israel Sieff took over as Chairman. A cautious international expansion began with the introduction of Asian food in 1974. M&S opened stores in continental Europe in 1975 and in Ireland four years later.
The company put its main emphasis on quality, but for most of its history, it also had a reputation for offering fair value for money. When this reputation began to waver, it encountered serious difficulties. Arguably, M&S has historically been an iconic retailer of 'British Quality Goods'. Its business model required suppliers to commit to long term contracts solely with M&S. This approach often led to over-reliance by manufacturers on the portion of trade they did with M&S. Accordingly, when the M&S fashion buyers changed suppliers on some aspects of the company's retail clothing offering, manufacturers were left dangerously exposed: many became insolvent. This has resulted in a change of climate, and no longer is a contract to supply M&S held up as the panacea it once was.
In 1988 the company acquired Brooks Brothers, an American clothing company and Kings Super Markets, a US food chain. They were subsequently sold off, in 2001 and 2006 respectively. All international stores are operated under franchise, with the exception of the stores in the Republic of Ireland and Hong Kong which remain in company ownership. The first M&S store in central Asia was built in Kabul, Afghanistan in the 1960s. The store was later shut down. M&S expanded into Canada in 1973, and at one point had 47 stores across Canada. Despite various efforts to improve its image, the chain was never able to move beyond its reputation there as a stodgy retailer, one that catered primarily to senior citizens and expatriate Britons. The stores in Canada were smaller than British outlets, and did not carry the same selection. In the late 1990s, further efforts were made to modernize the stores and expand the customer base, and
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unprofitable locations were closed. Nonetheless, the Canadian operations continued to lose money, and the last 38 stores in Canada were closed in 1999. Expansion into France began with stores opening in Paris at Boulevard Haussmann and Lyon in 1975, followed by a second Paris store at Rosny 2 in 1977. Further expansion into other French and Belgian cities followed into the 1980s. Although the Paris stores remained popular and profitable, the whole of the Western European operation did not fare as well and 18 stores were sold in 2001.
1997 onwards
M&S's profits peaked in financial year 1997/1998. At the time it was seen as a continuing success story, but with hindsight it is considered that during Sir Richard Greenbury's tenure as head of the company, profit margins were pushed to untenable levels, and the loyalty of its customers was seriously eroded. The rising cost of using British suppliers was also a burden, as rival retailers increasingly imported their goods from low-cost countries, but M&S's belated switch to overseas suppliers undermined a core part of its appeal to the public. Another factor was the company's refusal until 2000 to accept any credit cards except its own store card. In addition, as an ageing and famously bureaucratic company, it was losing touch with potential younger customers, who were reluctant to shop with it. At the same time Greenbury, who had dominated the company, had his attention diverted by the Prime Minister's committee on directors' pay.
These factors combined to plunge M&S into a sudden slump, which took the company, its shareholders, who included hundreds of thousands of small investors, and nearly all retail analysts and business journalists, by surprise. The company's share price fell by more than two thirds, and its profits fell from more than a billion pounds in 1997 and 1998 to 145 million in the year ended 31 March 2001. Since the late 1990s M&S has experienced serious boardroom instability and has made a number of attempts to revive its business, with only partial success. By 1999, Online Shopping was brought in, and the company grew with new sales of fashion clothing. In 2001, with changes in its business focus such as accepting credit cards, the introduction of the "per una" clothing range Page 68

designed by George Davies, accompanied by a redesign of its underlying business model, profits recovered somewhat and M&S recovered some of its market share, but it soon became apparent that problems remained.
In 2004, M&S was in the throes of an attempted takeover by Arcadia Group & Bhs boss, Philip Green. On 12 July a recovery plan was announced which would involve selling off the financial services business to HSBC Bank plc, buying control of the per una range, closing the Gateshead Lifestore and stopping the expansion of its Simply Food line of stores. Philip Green withdrew his takeover bid after failing to get sufficient backing from shareholders. M&S was ranked 17 in The Times' "Top 100 Graduate Employers 2008". In February 2007, M&S announced the opening of the worlds largest M&S store outside the UK at Dubai Festival City. On 2 October 2008, M&S opened its first mainland China store in Shanghai. Problems with the supply chain for the first few months of opening led Stuart Rose, M&S chairman, to describe failures in basic shopkeeping.
Marks &Spencers plan

Our plan is to grow M&S into a world-class retailer thats customer-focused, fast-moving and flexible. We work hard to ensure we offer only the highest quality products, service and shopping environments in all of our stores. We will focus on five key growth areas: 1. Continue to invest in and grow our core UK retail business, by introducing new goods and services. 2. Strengthen our UK property portfolio. Page 69

3. Drive our M&S Direct business. 4. Expand our International business. 5. Integrate Plan A (our eco plan) into every aspect of how we do business, so that we grow in a sustainable way. Our brand values quality, value, service, innovation and trust are more important than ever. Our commitment to these values sets us apart from our competitors, and enables us to offer our customers something truly special.
In United Kingdom.
We have over 600 stores located throughout the UK, ranging from large out-of-town and flagship stores of over 100,000 sq ft, to Simply Food stores of around 7,000 sq ft. Our largest store is located at Marble Arch on London's Oxford Street and has around 170,000 sq ft of selling space
International
We have over 285 stores in 40 territories. Going forward we plan to expand our international business through both our franchised operations and partnerships in some of the worlds most dynamic emerging economies.
Details of M&S
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Type Founded Headquarters Key people : Public (LSE: MKS, OTCBB: MAKSY) : Leeds, West Yorkshire, England (1884) : London, England : Michael Marks, co-founder Thomas Spencer, co-founder Sir Stuart Rose, Executive Chairman Industry Products : Retailer : Clothing, food, home ware, hospitality, furniture, technology, Beauty, financial services, energy. Revenue Operating income Net income Employees : 9,062.1 million (2009) : 870.7 million (2009) : 506.8 million (2009) : 75,389 (2008)
Board of members
Marks & Spencers Board
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Sir Stuart Rose , Chairman Sir David Michels , Deputy Chairman Ian Dyson, Group Finance and Operations Director. Kate Bostock, Executive Director, General Merchandise Steven Sharp ,Executive Director, Marketing. Jeremy Darroch, Non-Executive Director. Martha Lane Fox, Non-Executive Director Steven Holliday, Non-Executive Director Louise Patten, Non-Executive Director Graham Oakley, Group Secretary and Head of Corporate Governance. Jan du Plessis, Non-Executive Director
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Financial Information
Chairman
Sir Stuart Rose
Appointed in May 2004. Stuart was appointed Executive Chairman in June 2008. He is a nonexecutive director of Land Securities plc and Chairman of Business in the Community. Stuart began his career in retail at Marks & Spencer in 1972, before going on to the Burton Group in 1989, becoming Chief Executive of the Multiples Division in 1994. He left the Group following the demerger in 1997. Stuart was Chief Executive of Argos plc in 1998 and later became Chief Executive of Booker plc. Before re-joining Marks & Spencer as Chief Executive in 2004 he was Chief Executive of Arcadia Group plc from 2000 until 2002. Stuart was knighted in 2008 for services to the retail industry and corporate social responsibility. Member of Nomination Committee Print page close
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[INDUSTRIAL REVIEW PROJECT] 200 9 Sir David Michels

Deputy Chairman
Appointed in March 2006. David is Deputy Chairman, Chairman of the Nomination Committee and senior independent director. He is senior independent director of easyJet plc and has been appointed interim Chairman with effect from 1 July 2009. David is a non-executive director of Strategic Hotels & Resorts and Jumeriah Group, Dubai. He was senior independent director of The British Land Company plc until 2008 and had previously been a non-executive director of RAB Capital plc and Arcadia Group. David spent his early career employed by Grand Metropolitan, Ladbrokes and Stakis before rejoining Hilton / Ladbrokes in 1999 as Chief Executive, becoming Chief Executive of Hilton Group plc from 2000 to 2006. David was knighted in June 2006. Chairman of the Nomination Committee, member of the Audit and Remuneration Committees Independent Print page close
Ian Dyson
Group Finance and Operations Director
Appointed in June 2005. Ian joined Marks & Spencer as Group Finance Director, becoming Group Finance and Operations Director in March 2008. Ian was formerly Finance Director of The Rank Group plc. Prior to this he was Group Financial Controller of Hilton Group plc. He Page 74

joined Hilton from Le Meridien, a division of Forte plc, where he had been Finance Director. His early career was spent with Arthur Andersen, where he qualified as a Chartered Accountant in 1986 and was promoted to a Partner of the firm in 1994. Ian was a non-executive director of Misys plc until September 2005. Print page close
Kate Bostock
Executive Director, General Merchandise
Appointed in March 2008. Kate joined Marks & Spencer in October 2004. Previously, Kate was Product Director for Childrenswear at Next from 1994, before joining Asda in 2001 as Product Director for the George Global Brand. She was responsible for the launch of the standalone George concept and the launch of the George brand globally. Print page close
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[INDUSTRIAL REVIEW PROJECT] 200 9 Steven Sharp

Executive Director, Marketing
Appointed in November 2005. Steven joined Marks & Spencer in May 2004. He is a nonexecutive director of Adnams plc and an elected member of the Tate Members' Council. Steven started his career with Bejam in 1978, progressing to the Argyll Group and became Marketing Director of Asda in 1987. He joined the Board of Debenhams in 1989. He later became Marketing Director of the Burton Group, Booker plc and Arcadia Group plc. He is a Fellow of the Chartered Institute of Marketing, The Marketing Society and The Royal Society of Arts, as well as a visiting Professor of Glasgow Caledonian University. Print page close
Jeremy Darroch
Non-Executive Director
Appointed in February 2006. Jeremy is Chairman of the Audit Committee. He was appointed the Chief Executive of British Sky Broadcasting Plc in December 2007 having been the companys Chief Financial Officer since 2004. Jeremy was previously Group Finance Director and Retail Finance Director at Dixons Group plc. He spent 12 years at Procter & Gamble in a variety of roles, becoming European Finance Director for their Healthcare division. He qualified as a chartered accountant with Deloitte Haskins and Sells.
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Chairman of the Audit Committee, member of the Nomination Committee Independent Print page close
Martha Lane Fox

Appointed in June 2007. Martha is a non-executive director of Channel 4 Television and a Trustee of the charity Reprieve. She is founder and Chairman of Lucky Voice, and of her own grant giving foundation, Antigone. Martha is also a director of mydeco.com. She co-founded lastminute.com in 1998, taking the company public in March 2000, remaining on the Board until the company was purchased by Sabre Holdings in 2005. Member of the Audit, Remuneration and Nomination Committees Print page close
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[INDUSTRIAL REVIEW PROJECT] 200 9 Steven Holliday

Appointed in July 2004. Steven was appointed Group CEO of National Grid plc in 2006, having at different times been responsible for the UK Electricity and Gas businesses. He was formerly an executive director of British Borneo Oil and Gas. Previously, he spent 19 years with the Exxon Group where he held numerous senior positions. His international experience includes a four-year spell in the US. Steven has also developed business opportunities in countries such as China, Australia, Japan and Brazil. Member of the Audit, Remuneration and Nomination Committees Independent Print page close
Louise Patten
Appointed in February 2006. Louise was appointed Chairman of the Remuneration Committee in January 2007. She is non-executive Chairman of Brixton plc, a non-executive director of Bradford & Bingley plc and a senior adviser to Bain & Co. Louise began her career at Citibank and remained in financial services until 1993 when she joined Bain & Co as a Partner. She was formerly a non-executive director of Hilton Group plc, GUS plc, Somerfield plc and Harveys Furnishings plc. Page 78

Member of the Nomination Committee Chairman of the Remuneration Committee Independent Print page close
Graham Oakley
Group Secretary and Head of Corporate Governance
Appointed in August 1997. Graham is Secretary of the Audit, Remuneration and Nomination Committees. In 1985, he joined Marks & Spencers Legal Department. He was appointed Head of Legal in 1990, Company Secretary and Chief Legal Adviser in 1997 and Head of the Corporate Governance Group in June 2002. On 8 July 2009 he will retire and will be succeeded by Amanda Mellor, current Head of Investor Relations. Print page close
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[INDUSTRIAL REVIEW PROJECT] 200 9 Jan du Plessis

Appointed in November 2008. Jan was appointed Chairman of British American Tobacco plc in July 2004, having been a non-executive director on that Board since 1999. He was appointed Chairman of Rio Tinto plc in April 2009 having been a non-executive director on its Board since September 2008. Jan was a non-executive director and Chairman of the Audit Committee of Lloyds Banking Group plc until April 2009. He was previously Group Finance Director of the Swiss luxury goods group Richemont, a position he held until 2004. He was Chairman of RHM plc from 2005 until its takeover by Premier Foods in March 2007. Jan is a South African Chartered Accountant. Member of the Audit and Nomination Independent Print page close
Until 1999 M&S's financial year ended on 31 March. Since then, the company has changed to reporting for 52 or 53 week periods, ending on variable dates.
Year ended
Turnove r ( M) 9,062.1 9,022.0 8,588.1 7,797.7 7,490.5 8,301.5 8,019.1
Profit before tax ( M) 706.2 1,129.1 936.7 745.7 505.1 781.6 677.5
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Net profit ( M) 506.8 821.0 659.9 520.6 355.0 452.3 480.5
Basic eps (p) 32.3 49.2 39.1 36.4 29.1 24.2 20.7
28 March, 2009 29 March, 2008 31 March, 2007 1 April, 2006 2 April, 2005 3 April, 2004 29 March,

2003 30 March, 2002 31 March, 2001 1 April, 2000 31 March, 1999 31 March, 1998 31 March, 1997 31 March, 1996 8,135.4 8,075.7 8,195.5 8,224.0 8,243.3 7,841.9 7,233.7 335.9 145.5 417.5 546.1 1,155.0 1,129.1 965.8 153.0 2.8 258.7 372.1 815.9 746.6 652.6 5.4 0.0 9.0 13.0 28.6 26.7 455.8
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Marks & Spencer in INDIA

Three or four Indian firms are interested in partnering Marks & Spencer in the venture, which will be 51 percent owned by the British firm, the paper said, citing an unnamed industry source. M&S, which currently has about 20 franchises operated by India's Planet Retail, will also sell food and home furnishings under the new format, the paper said. India permits single-brand retailers to own up to 51 percent in a joint venture with a local firm. Multiple-brand retailers are restricted to franchise and license operations. Marks & Spencer Chief Executive Stuart Rose recently unveiled a major push into international markets, which he expects will account for 20 percent of revenues in five years, up from less than 10 percent now. M&S planned to enter China on a wholly owned basis and was seeking to trade up to bigger formats of around 40,000 sq. ft. in India, with a focus on New Delhi, Mumbai and Bangalore, Rose said earlier this month.
Marks & Spencer JV with Reliance retail

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Britain's clothing and food retailer Marks & Spencer will set up of a joint venture firm with Mukesh Ambani-led Reliance Retail at an investment of 29 million pounds (around Rs 230 crore) to mark its foray into India. The British company will hold a 51 per cent stake in the JV, to be named Marks and Spencer Reliance India Pvt Ltd, while the remaining will be with Reliance Retail. "India is a very exciting opportunity for Marks & Spencer and a market where there is the potential for M&S to become a major retail brand. Reliance Retail is the ideal partner for us to accelerate our expansion and create the opportunity to open much bigger M&S stores," Marks & Spencer Chief Executive Stuart Rose said in a statement. The new joint venture will have the right to operate Marks & Spencer stores in India, selling items such as homewares and clothing for women, men and children. It will aim to open at least 50 new stores in the country over the next five years. Planet Retail, Marks & Spencer's existing franchise partner in India, will continue as a franchisee in respect of the 14 existing stores. The announcement is part of Marks & Spencer's plans to grow its international business to 15-20 per cent of group revenues within the next five years. The Chief Executive Officer of Marks and Spencer Reliance India Pvt Ltd will be Mark Ashman, while Chief Financial Officer will be Jatin Luthra. "M&S is a very well respected brand globally. At Reliance, we have always strongly believed in the power of the Indian consumer market," Reliance Industries Chairman Mukesh Ambani said.
Britain's clothing and food retailer Marks & Spencer will set up of a joint venture firm with Mukesh Ambani-led Reliance Retail at an investment of 29 million pounds (around Rs 230 crore) to mark its foray into India. The British company will hold a 51 per cent stake in the JV, to be named Marks and Spencer Reliance India Pvt Ltd, while the remaining will be with Reliance Retail. "India is a very exciting opportunity for Marks & Spencer and a market where there is the potential for M&S to become a major retail brand. Reliance Retail is the ideal partner for us to Page 83

accelerate our expansion and create the opportunity to open much bigger M&S stores," Marks & Spencer Chief Executive Stuart Rose said in a statement. The new joint venture will have the right to operate Marks & Spencer stores in India, selling items such as homewares and clothing for women, men and children. It will aim to open at least 50 new stores in the country over the next five years. Planet Retail, Marks & Spencer's existing franchise partner in India, will continue as a franchisee in respect of the 14 existing stores. The announcement is part of Marks & Spencer's plans to grow its international business to 15-20 per cent of group revenues within the next five years. The Chief Executive Officer of Marks and Spencer Reliance India Pvt Ltd will be Mark Ashman, while Chief Financial Officer will be Jatin Luthra. "M&S is a very well respected brand globally. At Reliance, we have always strongly believed in the power of the Indian consumer market," Reliance Industries Chairman Mukesh Ambani
Social and environmental policy

Cut flowers
War on Want criticised M&S, along with Tesco and Sainsbury's, in its Growing Pains report[19] for using its influence to squeeze overseas suppliers to constantly reduce their costs while boosting their own profits.
Look Behind the Label

In 2006 the Look Behind the Label marketing campaign was introduced.The aim of this campaign was to highlight to customers, the various ethical and environmentally friendly aspects, of the production and sourcing methods engaged in by M&S including: Fairtrade Page 84

products, sustainable fishing and environmentally friendly textile dyes. All coffee and tea sold in M&S stores is now Fairtrade. in addition the company offers clothing lines made from Fairtrade Cotton in selected departments. At Christmas the company introduces a range of food products to support the housing charity Shelter predominantly in the food to go range including a range of seasonal Christmas sandwiches. Support for Israel Anti-Zionists have criticised the company for its support for the State of Israel. Former Chairman of M&S, Lord Marcus Sieff, wrote that support for the economic development of Israel was one of the fundamental objectives of M&S. Anti-Zionist activists have campaigned against the company and some stores have had their signage altered and their goods re-labelled. There is currently a boycott held by Muslim and non-Muslim groups, some are passive while others actively target customers or promote the boycott to the general public.
Plan A
On 15 January 2007, M&S launched an initiative, known as 'Plan A', to dramatically increase the environmental sustainability of the business within 5 years and expected to cost 200 million. The plan covers "100 commitments over 5 years to address the key social and environmental challenges facing M&S today and in the future" with the tag-line "Because there is no Plan B". The commitments span five themes: climate change, waste, sustainable raw materials, 'fair partnership' and health,with the aim that, by 2012, it will: Become carbon neutral Send no waste to landfill Extend sustainable sourcing Help improve the lives of people in their supply chain Help customers and employees live a healthier life-style
Despite an 18% fall in the share price in January 2008, following publication of their latest trading statement, the company confirmed that they would be continuing with the plan, saying that there were 'compelling commercial - as well as moral - reasons to do so'.
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May 2008 has seen the introduction of the 5p carrier bag scheme at M&S stores, with customers now paying 5p per standard sized vest carrier bag for food purchases. This implementation was brought about through the 'Plan A' scheme, to try to discourage use of the traditional plastic bag. All profits from the sale of food bags goes to Groundwork UK. However, profits have fallen significantly over the end of 2008 and so it seems that they may need to scrap their charge-forbags policy, as sales have also recently fallen and this may be a factor.In becoming carbon neutral the company has committed to only use carbon offsetting as a last resort, restricted to cases "where it is required by government or where the technology for green air or road transport will not be available for the foreseeable future". As of August 2008 M&S had three wind turbines in operation, one at Methlick and two near Strichen, generating enough power to supply three stores via the National Grid. In April 2009 the company began purchasing 2.6 TWh of renewable energy (wind and hydroelectric) from Npower, enough to power all Marks & Spencer stores and offices in England and Wales.
Marketing
During the height of the company's troubles at the beginning of the 21st century, the St Michael brand used as the selling label for all M&S products was discontinued in favour of Marks & Spencer and a new logo in the Optima typeface was introduced and began to appear in place of St Michael on product packaging. The same logo was also rolled out across store fascias and carrier bags. The St Michael name was subsequently adopted as a 'quality guarantee' and appeared as the St Michael Quality Promise on the back of food products, on the side of delivery vehicles and on in-store ordering receipts. This has since been phased out, although the storeordering receipts given to customers still feature this 'seal of approval' on the bottom. When Steve Sharp joined as marketing director in 2004, after being hired by new Chief Executive Sir Stuart Rose, he introduced a new promotional brand under the Your M&S banner, with a corresponding logo. This has now become the company's main brand in its advertising, online presence and in-store merchandising. The clean fonts and modern colours of the new image are somewhat incongruous alongside the traditional M&S signage and associated fittings Page 86

that still adorn many of the unmodernised 'core' stores themselves. In fact the only thing they have in common is the use of M&S traditional green in the ampersand of the new logo. In 2007 the same typeface used for the new M&S logo was adopted to replace the Optima logo used on product packaging and store fascias since 2000. This new logo is also beginning to appear on new-style sewn in clothing labels and presented in its linear, non-stacked form, complete with lime-green ampersand. The new look has been instrumental in the company's recent resurgence, particularly with the success of a new clothing campaign featuring the celebrated model, Twiggy, and younger models associated with the bohemian styles of 2005-6, and the new TV ad campaign for its food range. These adverts have the tagline "This is not just food, this is M&S food" and feature slow motion, close-up footage of various food products, described in a sultry voiceover by Dervla Kirwan, to an enticing instrumental song - most notably Fleetwood Mac's Albatross as well as Santana's 'Samba Pa Ti', Groove Armada's 'At The River' or Spandau Ballet's 'True'. These adverts have been referred to by both fans and critics as being "food porn", with a number of other companies copying the idea, such as ALDI and, most recently, Waitrose
New store format
A new store format designed by Urban Salon Architects, has won much praise and is in the process of being rolled out across all stores, with most stores being completed by the end of 2008. The full new look makeover is a reworking of store design, including the gutting of old stores, and installation of a brighter, more spacious, modern and contemporary design, replacing carpets and laminate floors with white tile throughout (black tile in Foods) thus opening the floor instead of having pathways, having new contemporary white mannequins in new designs and poses, new Page 87

displays and kit such as new design clothing rails, product stands (formerly known as "Lutons"), display and product walls, window display styles, larger fitting rooms, glass walls, till points, and general total updating of decals, designs, equipment, and lighting. Several of the old 'Luton' format stores have received what is known internally as a 'Light Touch' re-fit, which involves bringing the store up-to-date with new floors, till points, mannequins, signage etc (actual work differs per store) but not to the extent of a full refurbishment, as mentioned above. This occurs in stores that are subject to re-development/re-location. M&S was the first retailer in the UK to introduce self checkout tills in the food-halls of a small number of trial stores back in 2002. Self Checkout was implemented in the general merchandise sections in 3 trial stores in 2006 and roll-out to flagship stores is in progress.
Current share price
341.00p GBp -8.50 10/08/2009 at 17:03
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MARKET SHARE
High street retailer Marks & Spencer lost market share in the clothing sector during the period of January of 2008 and January of 2009, the Daily Telegraph newspaper reported, citing industry figures. Data seen by the newspaper from Fashion Trak, the market research company, showed that M&S lost 12 basis points of market share during the month, taking its share of the clothing market from 10.78 percent to 10.66 percent, according to a draft of the Telegraph's business front page. It said the chain's core womenswear ranges lost the highest amount of market share, dropping 21 basis points. Menswear fell by eight basis points and childrenswear by one basis point. Over the 24 weeks to March 1, M&S lost 49 basis points of share, according to the figures. The report said that M&S's fierce rival Next broadly held its share over February, as did department store Debenhams.
Market share information on the UK clothing retail market is summarised below: Market share information on the UK clothing retail market is summarized below: Position 1 2 3 4 5 Brand M&S Next Arcadia Debenhams Asda Sales( in ml) 2,743 1,708 1,609 1,076 963 Market Share 10.2% 6.3% 5.9% 4.6% 3.6% Number of Outlets 315 333 1,603 97 215
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[INDUSTRIAL REVIEW PROJECT] 200 9 CRM

Your M&S Club
Enrolment
Our enrolment very simple. All you join Your M&S Club is a bill of Rs. 2500. This programme is valid in India only.
process
process is need to
Reward system
Shopping could not have been more fun. For every purchase that you make at Marks & Spencer you earn special reward points. This holds true even for purchases made on discounted items. The reward points you earn reflect within a short span of 7 days and can be redeemed against further purchases at our stores. You can start redeeming your points once you have accumulated a minimum of 50 points, after which you can redeem them in denominations of Rs.50. Now doesnt that make for a simply rewarding shopping experience!
Point System, Reward system

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Every purchase of Rs. 100 earns you 1 point Every point you earn is equivalent to Re.1
Benefits
Your M&S Club loyalty card is a ticket to a world of special privileges. Asour loyalty member you can look forward to:
Refer a friend and earn points:

We believe a good deed should never go unrewarded. Help a friend discover the privileged world of the Your M&S Club and earn an extra 50 points.
Birthday/anniversary offers:
Your special days become even more special as our Club member. You can look forward to treating yourself with a special 10% discount on all Marks & Spencer merchandise on these days. This does not include the Sale merchandise.
Special Invitations:
As a part of the extended Marks & Spencer family you can look forward to some special invites.
Tell us about yourself:

Another opportunity to earn major points will soon be with you. You willshortly receive an email welcoming you to your M&S Club. Fill inall your details clearly and completely for an assured 50 points.
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Customer support
Refund Policy
Our exchange and refund policy... We're happy to exchange or refund items returned to us in a saleable condition, with a receipt, within 60 days. If you don't have the receipt we'll offer you a credit voucher for the current or last selling price. Does not include the following items: 1. Products which have been worn or used. 2. Garments which have been altered. 3. Pillows or duvets, where the packaging has been opened. 4. Toiletries.
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[INDUSTRIAL REVIEW PROJECT] 200 9 Marks & Spencers heritage

125 years of M&S
Over the last 125 years.... we have built Your M&S into a brand that is the envy of businesses worldwide. Our five founding principles Quality, Value, Service, Innovation and Trust are central to everything we do, and ensure our offer remains as relevant as ever for each new generation of customers.
1. Celebrating 125 years

Throughout 2009/10 we will celebrate our 125th anniversary in different ways with our customers and employees. We are resurrecting old product favourites such as Eccles Cakes, as well as giving a modern twist to classic fashion, with our Dresses of the Decades. We are especially proud of our partnership with the University of Leeds that will showcase our extensive archive collection to the public for the first time.
2. Quality
We earned our reputation for quality by establishing strict criteria that we continue to follow today. In 1926 we adopted the revolutionary policy of buying directly from our manufacturers, which enabled us to get involved in the production process and more closely influence price, quality, and design.
3. Value
Dont Ask the Price its a Penny was our first value slogan, propped up on Michael Marks Penny Bazaar stall in the Kirkgate Market in Leeds. We have continued to offer value for every purse good, at the opening price point, through to better and best at the more luxurious end of our ranges.
4. Service
Our broad customer demographic gives us a unique position in the UK. We have never been complacent about this and strive to offer great customer service, so we can meet the nations Page 93

every need. In 1935 we introduced the first M&S Caf, and we are now the UKs fourth largest coffee shop chain. Fitting rooms were first installed as a trial in our Plymouth store in 1977 and we branched out to the Internet in 1999.
5. Innovation
From crease-free linen and machine washable silk, to selling the UKs first Iceberg lettuce in 1980 where M&S leads, others follow. In 1968 we began selling avocado pears. The name caused confusion though, with customers serving them as a dessert with custard. We quickly dropped the pear and issued instruction on how to prepare the avocados as part of a salad. Today we continue to innovate, with new ranges such as Cook Asian 1234.
6. Trust
At M&S we have always nurtured the belief that business conducted ethically and responsibly can deliver benefits. For example in 1975 Marcus Sieff, then Chairman, wrote to The Times detailing how we had reduced energy consumption by 500,000. Over the years customers have come to rely on us to do the right thing, a responsibility we do not take lightly. Plan A builds on this heritage and goes back to the belief that being responsible can also be profitable.
Brand Value M&S

In 2004 we introduced Your M&S to reflect the unique position M&S holds in British hearts and minds. Our customers are passionate about M&S and almost everyone has an opinion about us. Page 94

When times are tough, showing our customers that we continue to put the Your in Your M&S is crucial to retaining their loyalty and affection. They want to see that we are keeping faith with them by developing exciting and iconic products; ensuring our stores are easy to shop in and offer an enjoyable experience; and perhaps most importantly, by demonstrating that we listen to their feedback in the actions we take. Listening and responding The one clear message from our customers during the year is that they were feeling the pinch and wanted us to give them a helping hand. Firstly, we saw an opportunity to draw on our value credentials and give them restaurant quality food at a really affordable price, and in the comfort of their homes. The result was our Dine in for Two for 10 campaign introduced last autumn. Also in Food, our Wise Buys campaign, discussed in further detail by John Dixon, gives customers value without compromising on the quality or the sourcing of our products. Other key promotions included Dress for Less and our surprise One Day Christmas Spectaculars. Our Spectacular events proved useful in kicking off the festive shopping season at a particulary difficult time. These campaigns resonated with our loyal customers while encouraging new shoppers into our stores. Business with heart In our 125th year, we have the good fortune of being an incredible brand, with a rich history. We will continue to talk to our customers and stay true to our founding principles of Quality, Value, Service, Innovation and Trust. As we move into 2009/10, we speak plainly to our customers through our advertising emphasising Quality Worth Every Penny.
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Corporate Governance
The governance rules which apply to UK companies listed on the London Stock Exchange are found in the Combined Code on Corporate Governance (the Code) which was updated by the Financial Reporting Council in June 2008. Responsibility is a core part of governance for us in two respects. The Board must meet its accountabilities to wider stakeholders. Our employees must also play their part by acting responsibly at all times. The Board has a clear view of its accountabilities. As part of our active debates around succession and leadership development, we have established that our primary role as directors is to ensure that: our investors are rewarded with profitable returns; our customers experience Quality, Value, Service, Innovation and Trust every time they visit M&S; our employees are proud to work at M&S ; our suppliers are engaged in profitable partnerships; and our communities and the environment benefit from our sustainable business.
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Products
1. Womenswear
The Company markets its womenswear under the following brand names: Autograph Autograph Weekend Autograph lingerie Plus Collection Petite Collection Limited Collection (larger stores only) Limited Collection Maternity (larger stores only) Perfect - High end clothes Per una - designer fashion garments Per una petite (only available online) Portfolio (for 55 & over, headed by Marie Helvin) Classic Collection Bridal (only available online) Long & Tall (only available online) Footglove Floor 1 discount brands Ceriso underwear. Holiday - Beachwear.
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From early 2008 Plus and petite departments were integrated into their standard size departments so that customers could find the type of clothing they are looking for in one area. However customer feedback means that Plus and Petite may possibly return as separate departments sometime in 2009. In December 2008 it was confirmed the two new faces of the 2009 M&S Spring campaign would be ex Neighbours star Nicola Charles and Dani Behr.
per una
per una is a range of female clothing sold at M&S stores, launched on September 28, 2001 as a joint venture between M&S and Next founder George Davies. The brand name means for one (woman) in Italian. All per una items include the three hearts logo, inspired by a postcard seen by Davies while on holiday in Italy. Per Una has been a major success for the company, and in October 2004, Marks & Spencer bought the brand in a 125 million, two-year service contract with George Davies.Mr Davies will stay on for at least two years to run the company, with 12 months notice required if he wishes to leave. 1.
Childrens wear
Sleep - Kids' night clothes. Bridal and Conformation. School - school uniform. Themed - Kids' character clothing and cartoon merchandise ware. Casual - Kids' casual clothes and shoes. Limited - Girls' designer clothes. Baby wear - Baby clothes, Blanket sleepers, baby's bibs and cot linen. Page 98
The Company markets its childrens wear under the following brand names:

Baby wear petite (small babies). Fashion - Babies fashion clothes. Romper-suit republic - Baby clothes (only available online). The Shirtsleeve empire - Boys' shirts (only available online). Autograph junior - Kid's smart clothes and coats. Dress-up (fancy dress) Ready to play playwear
1. Menswear
The Company markets its menswear under the following brand names: Blue Harbor - Britain's largest men's casual brand, includes the sub-brands Heritage and Luxury North Coast - Cool, easy and relaxed casuals. Autograph - Smart-casual clothing exclusively designed for M&S by designers such as Nigel Hall and Jeffery West. Includes accessories, footwear, underwear, and nightwear. Collezione - Formal, Italian inspired clothing. Stormwear - Water-repellent clothing, includes denim, shorts, chinos, coats, footwear and suits. Big & Tall - Larger sized clothing only available from marksandspencer.com. Ultimate - High end suites, trousers, shirts, ties and blazers. Tailoring - Formal Shirts, Ties, and Formal Accessories. The Sartorial Collection - Sartorial suits. Cool & Fresh - Keeps you cool and fresh by absorbing excess moisture on the skin. Climate Control - Keeps you cool in the summer and warm in the winter using technology from NASA.
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1. Footwear
Footglove-All shoes. Per Una- Women's' shoes. Fresh feet- Silver technology sports socks. Climate control- Men's' sports socks. Fresh and cool- Men's socks. Ceriso- Women's tights, suspender stockings, stockings, pantyhose and socks. Lambswool- Men's' high end wool socks. Junior- Kids' socks. Formal- Men's formal socks.
1. Make-up and perfumes

Autograph (Both Male and Female) Harvard Autograph Sport Woodspice Blue Energy Per Una Isis (for both genders) Florentyna Natural Beauty Page 100

Earth Spa InBloom Royal Jelly Ingredients Formula - Skincare and Suncare Formula For Men Cotton Collection (toiletries and soaps). Floral collection (toiletries and soaps).
1. Homeware
Furniture - Sofas, Bedroom suites, Bathroom furniture, Dining suites. Kitchens - Crockery, Kitchen Electrical, Utensils, Pans. Bathrooms - Towels, Linen baskets, Accessories. Bedding and pillows. Soft Furnishings - Cushions, Throws, Curtains. Hard Furnishings - Vases, Candles, Ornaments, Lamp stands. Technology T04- T.V.s, Clocks, Radios.
1. Technology
In 2006 the Company launched a range of technology products. A total of 36 stores now offer this range. Additional services offered include television installation and technical help. The service has been very successful for the company and many customers have commented on the professionalism and helpfulness of members of staff.
2. Wine
In 2006 and 2007, M&S entered over 100 of its own wines into two wine competitions, The Decanter World Wine Awards and The International Wine Challenge. Both years, almost every Page 101

wine won an award, ranging from the 2005 Secano Pinot Noir, Leyda Valley, Chile (Best Pinot Noir in the world for under 10) to the Rosada Cava (Commended)
Stores
M&S have over 600 stores throughout the United Kingdom, with nearly 1.2 million square metres (12.5 million square feet) of selling space. This includes the flagship, and largest, store, Marble Arch, London, on Oxford Street, which has around 16,000 square metres (170,000 square feet) of sales floor. The second largest store is in Warrington, although the forthcoming M&S Megastore in Leeds will take over as the largest outside London. The third largest store is at the Sprucefield Centre in Lisburn, Northern Ireland. In 1999 M&S opened its store in Manchester's Exchange Square, which was rebuilt following the 1996 Manchester bombing when the store was destroyed. When it reopened it was the largest M&S store with 250,000 sq ft (23,000 m2) of retail space. Before Christmas 2006, a total of 22 M&S stores were open for 24-hour trading including the recently opened new retail park stores at Bolton Middlebrook and at the Abbey Centre, Newtownabbey, Northern Ireland.
International stores
There are currently stores located in the following countries: Bahrain, Bermuda, Bulgaria, China, Croatia, Cyprus, Czech Republic, Estonia, Gibraltar, Greece, Guernsey, Hong Kong, Hungary, India, Ireland, Indonesia, Jersey, Kuwait, Latvia, Libya, Lithuania, Malaysia, Malta, Montenegro, Oman, Philippines, Poland, Qatar, Romania, Russia, Saudi Arabia, Singapore, Serbia, Slovakia, Slovenia, South Korea, Switzerland, Thailand, Turkey, Ukraine and The United Arab Emirates.
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SHOPPER STOP
Shoppers Stop is an Indian department stores promoted by the K Raheja Corp Group (Chandru L Raheja Group), started in the year 1991 with its first store in
SAndheri, SMumbai
Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by
SWorld Retail Congress at SBarcelona, on April 10, SBSE.

With the launch of the Navi Mumbai
2008. Shoppers Stop is listed on the
departmental store, Shoppers Stop has 26 stores in 13 cities in SIndia.
Location: Mumbai, Navi Mumbai, Delhi, Chennai, Bangalore, Hyderabad, Pune Opening date: 1991 Developer: K. Raheja Management B.S. Nagesh (Customer Care Associate & MD) Govind Shrikhande (Customer Care Associate, Executive Director & CEO) No. of stores and services :27 Parking :Valet Old logo.
STORE
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Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of department stores under the name Shoppers Stop in India. Currently Shoppers Stop has twenty seven (27) stores across the country and three stores under the name HomeStop. Shoppers Stop has also begun operating a number of specialty stores, namely Crossword Bookstores, Mothercare, Brio, Desi Caf, Arcelia. Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel, footwear, fashion jewellery, leather products, accessories and home products. These are complemented by cafe, food, entertainment, personal care and various beauty related services. In April 2008, Shoppers Stop changed its logo and adopted the mantra "Start Something New". Shoppers Stop undertakes image makeover; revamps looks, logo, uniforms, among others Change is essential. Our consumers are changing, their preferences are constantly evolving. They are getting younger. And so, we have to change along with them. B S Nagesh, Customer Care Associate & Managing Director, Shoppers Stop. After 17 years of existence K Raheja owned and B. S. Nagesh managed Indias largest department stores retail chain Shoppers Stop has decided to spend Rs. 20 crore ($5 million) on image makeover. In a major revamping exercise, it has changed its logo, baseline, uniforms, shopping bags, and looks, among others, though, it will not change its black and white colours. Explaining rationale behind retaining colours, Govind Shrikhande, CCA & Chief Executive Officer, Shoppers Stop, said, It is more classical, rich and authoritative, something Shoppers customers connect with. Black and white gives us a strong brand recall value. The simple but classic new logo without the old elliptic ring, which has an international look and a timeless appeal, carrying the new baseline Start something new prods customers into taking a step ahead to upgrade themselves to the next level in life. The change in the identity is just the beginning of a wave of strategic movements which is being made in people, people practices, introduction of new ways of shopping, technology investment in CRM and analytics, said B S Nagesh, Customer Care Associate & Managing Director, Shoppers Stop. Page 104

Identity change will also be accompanied by a new range of recyclable shopping bags that are based on fashion through ages theme, and new look stores with in-store radio and trial rooms with day and night lighting options. Also to be introduced along with is an anthem written by Gulzar and sung by Sonu Nigam for recitation of its employees. Also, on the cards is a broadcasting station that will air fashion content and music across the stores. Shoppers Stop, currently operating 24 stores and occupying 1.6 million sq ft of space, is looking at scaling up the number of stores to 50, within the next three to five years. Around 10 of these stores are likely to come up during this year. (source: newspaper article)
Products
Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle, Magppie, Nike, Reebok, LEGO, and Mattel. Shoppers Stop retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, Acropolis etc. The company also licensees for Austin Reed (London), an international brand, whos mens and womens outerwear are retailed in India exclusively through the chain.
Loyalty program
Shoppers Stops has a loyalty program called First Citizen. They also offer a co-branded credit card with Citibank for their members.
Shoppers Stop's sister stores are:

Crossword Bookstores
Crossword Bookstores is a chain of largest bookstores in India with 52 branches. Shoppers Stop acquired 100 per cent stake in bookstore chain Crossword. Crossword is positioned as a lifestyle bookstore with their spacious, well laid out stores which encourages customers ease in browsing through the merchandise of books, music, stationary and toys.
HomeStop
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HomeStop is premium home furnishings home concept store, which offers products in home decor, furniture and accessories, bath accessories, bedroom furnishings, mattresses, draperies, carpets, modular kitchens and health equipment.
Brio
Brio makes Shoppers Stop Ltd.'s foray into Food and Beverage which was a step towards franchised coffee bars. Brio the caf bistro is designed provides customers a place to relax, revive and reflect. It has a classic yet sophisticated ambiance. Brio has 20 outlets in select cities. Cafe Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with Shoppers Stop to run its BRIO outlets.
Desi Cafe
Desi Caf and their operations have been taken over by Cafe Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with Shoppers Stop to run its Desi Cafe outlets.
HyperCity
HyperCity provides customers a wide variety of range of products for shopping in a large and modern retail environment. It offers a contemporary range of products, sourced from both local and international markets. The product range covers: Foods and Grocery, Homeware, Home Entertainment, Hi-Tech, Appliances, Furniture, Sports, Toys & Fashion.
M.A.C.
M.A.C. and Shoppers Stop Ltd. entered into a non exclusive retail agreement with cosmetics major Estee Lauder to open up M.A.C. Cosmetics stores in India. M.A.C. Makeup-Art Cosmetics - the professional brand of choice, is the first brand under the Estee lauder Group of Companies portfolio to enter the Indian retail market. Currently there are 9 M.A.C. stores operating.
Arcelia
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Arcelia is a new retail concept aiming at the growing accessories and cosmetics segment, with a strong emphasis on experience and indulgence and primarily caters to discerning women shoppers. It retails cosmetics, fragrances, fine jewelry, footwear, handbags.
MotherCare
Mother Care and Shoppers Stop come together to introduce products for infant and toddler care which stocks a variety of products for mother and babies, toddlers and children till eight years of age with the focus being on style, function and safety.
Nuance Group
Nuance Group with Shoppers Stop makes an entry into airport retailing. The alliance is marked with a joint venture with The Nuance Group AG of Switzerland, the worlds leading airport retailer. Shopper's Stop Ltd. is handling the retail operations at the duty free zones in international terminals. The joint venture company, called Nuance Group (India) Private Limited. is operating outlets at the International airports at Bengaluru and Hyderabad.
HyperCity-Argos
HyperCity-Argos and Shoppers Stop, the two retail ventures of K Raheja group had signed a memorandum of understanding with UKs leading retail chain Home Retail group to develop the Argos (retailer) retail format stores in India. Two years later, Shoppers Stop Ltd has informed Bombay Stock Exchange shall wind down and discontinue its catalogue retail operations under the Hypercity-Argos brand.
Timezone
Shoppers Stop forayed into the Entertainment sector by acquiring 45% stake in Timezone Entertainment Private Limited which is in the business of setting up and operating Family Entertainment Centers (FECs). It has 5 outlets in Ahmedabad, Hyderabad, Kolkata and Mumbai.
SHIPPING POLICY
We are committed to delivering your order accurately, in good condition, and always on Page 107

time. Please note our shipping policy as follows: We currently deliver to major cities in India. You can check Pin Codes of cities we deliver to. Currently, each order may be shipped only to a single destination address. If you wish to ship products to different addresses, you shall need to place multiple orders. We make our best efforts to ship each item in your order within 3 working days of the order. However in some cases, we may take longer, up to 7 working days, to ship the order as we may have to procure it from some other stores or our suppliers. In the unlikely event that we are not able to ship your order completely within 7 days of the order, we shall cancel the remaining unshipped part of the order, and send you an email informing you about the same. In such cases, your payment against the unshipped part of the order shall be refunded, in the manner you have made the payment. We ship on all week days (Monday to Saturday), excluding public holidays. Typically all Mumbai deliveries are completed within 1-2 days post shipment and outside Mumbai deliveries are completed within 2-4 days post shipment, excluding the date of shipping. To ensure that your order reaches you in the fastest time and in good condition, we only ship through reputed courier agencies. While we shall endeavor to ship all items in your order together, this may not always be possible due to product characteristics, or availability. If you believe that the product is not in good condition, or if the packaging is tampered with or damaged, before accepting delivery of the goods, please refuse to take delivery of the package, and call our Customer Care or mail us at estore@shoppersstop.com, mentioning your order reference number. We shall make our best efforts to ensure that a replacement delivery is made to you at the earliest. You may track the shipping status of your order on our website, by visiting our website.
Shipping Charges Page 108

Please refer to the table below to estimate the shipping charges which shall be included in your order value. Service tax (currently @ 10.3% ) shall be levied on shipping charges. For most products in our range Regular shipping charges shall apply. However, for some large, fragile or high value items, special rates may be applicable, which shall be indicated on the product detail page. Shipping charges are typically non-refundable, unless the product is returned due to a manufacturing defect. Shoppersstop.com reserves the right to determine whether the product has a manufacturing defect or otherwise. Please note that we do not charge additionally for octroi, where this is applicable. FREE SHIPPING on all orders above Rs.1000 : Limited Period Offer
Shipping charges per unit Shipping Code Regular - (for most items upto Rs. 2000 per unit) High value - (for items above Rs. 2000 per unit) Oversized - (if indicated in product details page) Gift Vouchers Note: Shipping Charges(Rs. per item) 50 60 100 10
1. Service tax @ 10.3% shall be charged on the shipping charges above 2. We do not charge additionally for octroi where this is applicable 3. For deliveries across india , the maximum shipping charge per order shall be limited to Rs. 300
Vision:
To be a Global Retailer in India and Maintain No.1 position in the Indian Market in the Department Store Category. Page 109

Positioning
Shoppers Stop is positioned as a family store delivering a complete shopping experience defined by its mission, vision and values.
1991: Shoppers' Stop launches at Andheri

Setting up shop in 1991 with its flagship store in Andheri, Mumbai, Shoppers Stop is a member of the K. Raheja Corp. of Companies. Shoppers 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, Shoppers Stop brought international standards of shopping to the Indian consumer providing them with a world class shopping experience.
India 2000 & Beyond

Expanding its operations to Bangalore, Hyderabad, Jaipur, Delhi, Chennai, Mumbai (Andheri, Bandra, Chembur, Kandivli, Mulund), Pune, Gurgaon and Kolkata, Shoppers Stop is today recognised as Indias premier shopping destination. With a customer entry of about 50,000 customers a day, a national presence with over 6,00,000 square feet of retail space and stocking over 250 brands of garments and accessories, Shoppers Stop has clearly become a one stop shop for all customers.
Customer Profile
Shoppers Stops 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 Rs.15000. A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to.
Range of merchandise
The stores offer a complete range of apparel and lifestyle accessories for the entire family. From apparel brands like Provogue, Color Plus, Arrow, Levis, Scullers, Zodiac to cosmetic brands like Lakme, Chambor, Le Teint Ricci etc., Shoppers Stop caters to every lifestyle need. Page 110

Shoppers' Stop retails its own line of clothing namely Stop, Life , Kashish, Vettorio Fratini and DIY. The merchandise at Shoppers Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill.
Their motto:
We are responsible for the goods we sell.
Customer Rewards The First Citizen

Shoppers Stops 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, Shoppers Stop has a database of over 2.5 lakh members who contribute to nearly 50% of the total sales of Shoppers Stop.
International Affiliations
Shoppers 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 country/region.
Acquisitions
The Organisation, in 2000, along with ICICI ventures also acquired the reputed bookstore, Crossword, 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, Shoppers 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 Page 111

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 Management

Understanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors, has led Shoppers 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 Plans
Shoppers Stop aims to position itself as a global retailer. The company intends to bring the worlds best retail technology, retail practices and sales to India. Currently, they are adding 4 to 5 new stores every year
K. Raheja Corp. Profile

Established in 1956, the Mumbai-based K. Raheja Corp. has made a successful transition from a real estate company to a business conglomerate with a diverse product portfolio. Led by C. L. Raheja, the K. Raheja Corp. has ventured into Retailing and Hospitality besides strengthening its core vertical of real estate business. The K. Raheja Corp. has been providing quality real estate solution in Mumbai and Pune. The group has also joined hands with APIIC to develop an IT Park at Cyberabad, Hyderabad. The upcoming facility with built up area of 4.5 million sq. ft. will house the IT and ITES industry. In 1991, the K. Raheja Group revolutionized the retail scenario in India by launching Shoppers' Stop in Andheri, Mumbai, their first retail venture. Shopper's Stop, India's first organized department store, redefined the way Indian people shop with its wide range of merchandise, exclusive shop-in-shop counters of international brands and world-class customer service. The Page 112

Group now operates twelve departmental stores across the country and is the most recognized brand in the industry. Crossword, India's premier book retailer was launched in October 15, 1992, with the vision of revolutionizing the concept of book retailing in India. Today, Crossword is one of India's fastest growing bookstores and is spread across seven cities - Delhi, Mumbai, Ahmedabad, Pune, Vadodara, Chennai and Hyderabad.
EXECUTIVE PROFILE*
Chandru L. Raheja is a Promoter of Shoppers Stop Limited. Mr. Raheja has extensive experience with the real estate, hospitality and retail industries across India. Mr. Raheja serves as Chairman of K Raheja Corp. of Inorbit Mall (India) Private Ltd
Financial Performance
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(Rs. in millions) Year ended 31 March, 2008 11345.69 168.30 88.44 11602.43 537.91 392.74 145.17 75.50 69.67 484.56 61.17 3.48 489.58
Particulars Retail Sales (Net of taxes) Other Operating Income Other Income Total Revenues
31 March, 2007 8463.05 145.03 132.55 8740 63 743.40 256.27 487.13 225.18 261.95 296.83 61.12 13.10 484.56
Profit before Depreciation & Tax Less: Depreciation Profit before Tax Less: Provision for Tax Profit after Tax Add/(Less): Balance brought forward from previous year Proposed Dividend (incl. Dividend Distribution Tax) Transfer to General Reserve Balance carried forward
Performance Review
Your Company has opened five department stores i.e one at Noida, one at Kolkata and three at New Delhi during the year, taking its chain of department stores to 27 stores spread across India. The revenue has touched Rs. 11,602 million (previous year Rs.8,741 million), registering a
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growth of 33% on y-o-y basis, whereas cash profit stood at Rs. 538 million and net profit at Rs. 70 million against Rs. 743 million and Rs. 262 million respectively last year.
Dividend
Your directors are pleased to recommend a dividend of Rs.1.50 (previous year Rs.1.50) per equity share of Rs.10 each. The dividend, once approved by the members in the ensuing Annual General Meeting will be paid out of the profits of the Company for the year and will sum up to a total of Rs. 61.17 million, including dividend distribution tax, as compared to Rs. 61.12 million in the previous year.
AWARDS AND RECOGNITION

Shopper Stop has been conferred with the following awards and recognitions during the year under review: Retail Destination of the Year at the Image Fashion Forum; Page 115

Most Admired Retailer of the Year for technology applications at Image Retail Award, 2007; Advertisement Campaign of the year CMAI APEX Awards; Departmental Store of the year at Star Retailer Award. Further, Mr. B. S. Nagesh, Customer Care Associate & Managing Director of Company has been inducted in the World Retail Hall of Fame along with your company winning the Emerging Market Retailer of the Year Award, at World Retail Congress, Barcelona, Spain.
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Status on utilization of IPO proceeds
As you are aware, your Company had made its initial public offerings (IPO) through 100% book building process in the year 2005 and raised Rs. 1653.16 million by issuing 6,946,033 Equity Shares of Rs.10 at a price of Rs. 238 per share inter-alia with the Object of the Issue for setting of 11 new stores, renovating and expanding some of our existing stores. As there was considerable delay in delivery of certain store premises which were forming part of the Object of the Issue, the Company has modified the aforesaid Object of the Issue with the approval of members at the last Annual General Meeting. Further, the renovation of Andheri store as envisaged was also replaced with renovation of Malad store. Out of the Rs. 1,653.16 million so raised, Rs. 1,578.50 million were utilized towards the objects of the IPO. The unutilized balance have been utilized in temporarily reducing exposure to working capital borrowings.
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Share Capital
During the year under review, the paid up equity share capital of the Company has increased by Rs. 0.35 million on account of allotment of equity shares pursuant to exercise of stock options under various ESOP Schemes. The Company has filed draft Letter of Offer with Securities & Exchange Board of India (SEBI) for issue of equity shares and detachable warrants thereto for raising a sum upto Rs. 5000 million by way of Right Issue to its existing equity shareholders.
Credit Rating
Fitch Ratings India Private Limited has continued its rating of F1 + (ind) [F one plus ind] for short term debt/commercial paper programme which is now increased to Rs. 800 million, indicating highest credit quality with strongest capacity for timely payment of financial commitments. We have also got rated by CRISIL for short term and long term borrowings for a sum of Rs.500 million each. For short term, CRISIL has assigned us a rating of P1 + whereas for long term, a rating of A+ has been assigned.
Finance
Your Company continues with various initiatives for bringing down short term instruments so as to have an increase in cash flow, reducing interest cost and improving working capital management.
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Employees Stock Option Plan

Your Company has formulated and designed Employees Stock Option Plan Schemes (ESOP Schemes) for its employees. During the year under review, the Company has allotted 35,096 Equity Shares of Rs.10 each under the said ESOP Schemes. Under Employees Stock Option Plan Scheme V (ESOP 2005), during the year under review, the Company has granted 400,000 Stock Options and 20,000 Stock Options on August 23, 2007 and January 28, 2008 respectively to the specified employees. Since Stock options issued under ESOP Scheme I and II have been fully vested and exercised by the employees, the schemes are already over. ESOP Scheme III, IV and V are in force and their vesting is scheduled in due course of time. The particulars of Employees Stock Option Plan (ESOP) Schemes, as required by SERI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, as amended, are appended here with and forms part of this Report. Since, substantial portion of earlier 10,00,000 options approved by members under Employee Stock Option Plan V (ESOP 2005) has been exhausted, it is proposed to seek your approval at the forthcoming Annual General Meeting, for grant of further 10,00,000 Employee Stock Options (ESOPs) to the employees of the Company and its subsidiaries under Employee Stock Option Scheme 2008 (ESOP 2008).
Fixed Deposits
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During the year under review, the Company has not accepted any deposit under Section 58A of the Companies Act, 1956, read with Companies (Acceptance of Deposits) Rules, 1975. No amount of principal or interest was outstanding as on the Balance Sheet date.
Subsidiary Companies
As required under section 212 of the Companies Act, 1956, the Audited Balance Sheet and Profit & Loss Account along with respective Reports of the Board of Directors and Auditors thereon of the following subsidiary companies for the year ended March 31, 2008 are attached:
a) Crossword Bookstores Ltd. b) Upasna Trading Ltd. c) Shoppers Stop.Com (India) Ltd. d) Shoppers Stop Services (India) Ltd. e) Gateway Multichannel Retail (India) Ltd. In compliance with Clause 32 of the Listing Agreement, and Accounting Standard AS 21, prescribed by the Institute of Chartered Accountants of India, audited consolidated financial statements forms part of this Annual Report.
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Human Resources
As an organization we are committed towards achieving exponential growth in our quest to become the leader in the department store category, delivering higher levels of sensory experience touching the hearts and minds of our consumers, stakeholders and employees. In continuation of our belief that people are the primary source of sustainable competitive advantage, your Company has worked continuously towards ensuring that its people practices are in line with being an employer of choice. As on date of the Balance Sheet, the Company had a total of 3,754 Customer Care Associates.
Auditors Your Companys Statutory Auditors, Deloitte Haskins & Sells, Chartered Accountants, Mumbai, retire at the conclusion of the forthcoming Annual General Meeting. Deloitte Haskins & Sells have sought the re-appointment and have confirmed that their re-appointment, if made, shall be within the limits laid down under Section 224(1 B) of the Companies Act, 1956. The Audit Committee and the Board of Directors recommends the re-appointment of Deloitte Haskins & Sells, Chartered Accountants, as the Statutory Auditors of the Company.
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Corporate Governance
The Company has been pro-active in following the principles and practices of good Corporate Governance. The Company has taken adequate steps to ensure that the conditions of Corporate Governance as stipulated in clause 49 of the listing agreement with the Stock Exchanges are complied with. A separate section on Corporate Governance and Auditors Certificate is annexed here to and forms part of this Report.
Compliance with the Code of Conduct

The Company had evolved and adopted a Code of Conduct for its Board of Directors and its managerial personnels based on the principles of good corporate governance and best management practices. The declaration of compliance with the Code of Conduct has been received from all Board Members and the managerial personnels. The Code is available on the website of the Company. A certificate in this effect from Mr. Govind Shnkhande, Executive Director and Chief Executive Officer forms part of this Report. Conservation of Energy, Technology absorption and Foreign Exchange earnings & out go.The particulars regarding foreign exchange earnings and expenditure are annexed here to and forms part of this report. The other particulars relating to conservation of energy and technology absorption stipulated in the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 are not applicable to the Company. Page 122
CONTROVERSY SURROUNDING MR. RAHEJA
Mumbai Business tycoon Nusli Wadia has moved the Bombay High Court against K Raheja Corps Chandru Raheja and his sons Ravi C Raheja and Neel C Raheja and nephews Rahul S Raheja and Ashish S Raheja for violating the agreement between him and the Rahejas on developing nearly 200 acres of land in Malad. The land is owned by late Eduljee Framroze Dinshaw and Wadia is the sole administrator. The agreement required the developer to sell or lease the land or any structure built by him on it only to genuine third parties. Wadia has alleged that CL Raheja group has fraudulently sold or leased it to their "own sister concerns and shell companies created for the purposes of purchase of these properties. Wadia has alleged fraud by Rahejas and demanded damages worth Rs 350 crore from them. Wadia has terminated the agreement with Ivory Properties and Hotels owned by Rahejas (dated January 2, 1995) with effect from February 1, 2008, and two powers of attorney on the same date executed by Wadia in favour of Ravi C Raheja and Neel C Raheja, Wadias advocates said in a public notice. Wadia has alleged that nearly ten properties have been illegally built by the Rahejas inlcuding Hypercity Mall, Inorbit Malls, Infinity Towers, Intelnet on the Malad land and asked the court to order Rahejas to demolish the structures on the land. He has also asked the court to stop all further renewals of shop leases and any further creation of third party rights. The next hearing is scheduled on February 16. Page 123

Source: Business Standard DIFFERENT AWARDS WON BY SHOPPER STOP Shoppers Stop won "The most admired Appeared Retailer of the year 2000" Award at the Images Fashion Awards.
Received Retail Destination of the Year at the Images Fashion Forum in Jan, 07.
Images Retail Awards - Sep 2007 Most admired Retailer - Technology Application - Shoppers Stop Most Admired Retailer - Leisure Category - CROSSWORD Most Admired Retailer - Retail design & Visual merchandising HYPERCITY
CMAI APEX Awards - Nov 2007 Received the following awards from the "Clothing Manufacturers Association of India"(CMAI) for the year 2006-07: - Retail Professional of the Year- Mr. B.S. Nagesh. - Advertising Campaign of the year - Shoppers Stop.
Star Retailer Awards - Dec 2007 "Department Store of the year" - Shoppers Stop "Value Retailer of the Year" - HyperCITY
Star Retailer Awards - Nov 2008 - "Department Store of the Year" - Shoppers Stop - "Debutant Retailer of the Year" ? GourmetCITY
WESTSIDE HISTORY
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ata Group (is a multinational conglomerate based in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India and has been recognized as one of the most respected companies in the world.
It has interests in steel, automobiles, information technology, communication, power, tea and hospitality. The Tata Group has operations in more than 85 countries across six continents and its companies export products and services to 80 nations. The Tata Group comprises 114 companies and subsidiaries in seven business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts Companies which form a major part of the group include Tata Steel, Corus Steel, Tata Motors, Tata Consultancy Services, Tata Technologies, Tata Tea, Titan Industries, Tata Power, Tata Communications, Tata Teleservices, Tata Auto Comp Systems Limited and the Taj Hotels Trent is the retail arm of the Tata group. Started in 1998, Trent operates Westside, one of the many growing retail chains in India. In 1998 Tata sold of their 50% stake in the cosmetic products company Lakm to HLL for Rs 200 Crore (approx. 45 million US$), and created Trent from the money it made through the sale. All shareholders of Lakm were given different shares in Trent. Simone Tata, the chairperson of Lakm, went on to head Trent. The reason behind the sale was that Simone Tata saw a greater growth potential in retail, and believed that it would be much more difficult for an Indian company to release new cosmetic products in a market that had opened up to global companies which could invest more in research.At West side their aim is to regard customer as a most relevant retailer in the world. This story began circa 1998 when The Tatas acquired Littlewoods a London based retail chain. This acquisition was followed by the establishment of Trent Ltd (a Tata enterprise that presently operates Westside). Littlewoods was subsequently renamed Westside. In a rapidly evolving retail scenario, Westside has carved a niche for its brand of merchandise creating a loyal following. Currently, the company has 36 Westside stores measuring 15,00030,000 square feet each across 20 cities. With a variety of designs and styles, everything at Westside is exclusively designed and the merchandise ranges from stylized clothes, footwear and accessories for men, women and children to well-co-coordinated table linens, artifacts, home Page 125

accessories and furnishings. Well-designed interiors, sprawling space, prime locations and coffee shops enhance the customers shopping experience. Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an ample assortment of products made available at the lowest prices, aptly exemplifying its Chota Budget, Lambi Shopping motto. At present Star Bazaar has 4 stores in 3 cities located in Ahmedabad, Mumbai and Bangalore. This store offers customers an eclectic array of products that include staple foods, beverages, health and beauty products, vegetables, fruits, dairy products, consumer electronics and household items at the most affordable prices. Star Bazaar also includes a largerange of fashionable in-house garments for men, women and children, exclusively available at the store. In addition, Trent recently acquired a 76% stake in Landmark, one of the largest books & music retail chains in the country. Landmark began operations in 1987 with its first store in Chennai with a floor space of 5500 sq. ft. At present Landmark have 10 stores, varying in size from 12,000 sq. ft. to 45,000 sq. ft, 3 in Chennai and 1 each in Bangalore, Gurgaon, Mumbai, Vadodara, Gurgaon, Pune, Lucknow and Ahmedabad. Until 1996, Landmarks product portfolio comprised books, stationery, and greeting cards. It was later that music was added to it. Landmark also sparked the trend of stocking curios, toys and other gift items. What separates Landmark from other stores of its kind is the range and depth of its stock
FOUNDERS PROFILE
Simone Tata, currently the Chairperson of the Trent Limited, is an Indian businesswoman. French by birth and educated in Switzerland, she came to India in 1955, and joined Lakm as Managing Director in 1961, rising to become its Chairperson in 1982. The small subsidiary of Page 126

Tata Oil Mills went on to become one of the leading cosmetic companies of India. As the Chairperson of Lakm, she was referred in the Indian media as the Cosmetic Czarina of India She was appointed to the board of Tata Industries in 1989. Eyeing growth in the retails sector, in 1996 Tata sold off Lakm to Hindustan Lever Limited (HLL), and created Trent from the money it made through the sale. All shareholders of Lakm were given, equivalent share in Trent. The Westside brand and stores belongs to Trent. Simone Tata was the wife of late Naval H. Tata and is stepmother to current Tata group chairman Sri Ratan Naval Tata.
MISSION
At Westside the mission is to be regarded by their customers as the most relevant retailer in the country. In order to achieve this goal, they shall develop a comprehensive understanding of their needs, strive to win their confidence, and offer them best-in-class products and services at affordable prices. They shall always be in the forefront of fashion and services by anticipating and exceeding the expectations of their customers. Their leadership will be the product of their styling, quality and service consciousness.hey will continue to scale new heights of excellence through teamwork, in an atmosphere that encourages creativity and innovativeness. It is their policy to satisfy their customers with the range, quality and value of the products we offer. However, if they are dissatisfied with any item that they might have purchased they would take the necessary measures to assist them. They expect their customers to return unused merchandise along with its receipt within 30 days; they would exchange the returned items or give the customers a complete refund. In the event that the customers do not have the receipt they would offer them an exchange or provide them a gift voucher to the current or last known selling price.
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They have complete confidence in the quality of their merchandise however should the customers have any grievances, they would be happy to address them once they are brought to their attention.
PRODUCT PROFILE
Style, affordable prices, quality: these are the factors that have shaped Westsides success story in the retail fashion stores business. Launched in 1998 in Bangalore, the Westside chain has, ever since, been setting the standards for other fashion retailers to follow.Westside stands out from the competition for a variety of reasons. One is that a majority of the brands the chain stocks and sells are its own, unlike retailers who store multiple labels. About 90 per cent of Westsides offerings are home-grown, and they cater to different customer segments. The other 10 per cent includes toys, cosmetics and lingerie. Westside has recently expanded its range of merchandise by offering outfits from some of Indias best-known fashion designers, among them Wendell Rodericks, Anita Dongre, Krishna Mehta and Mona Pali. This is an interesting marketing shift, since it means moving away from the chains only-our-own-brands concept. Westside is a departmental store having several product line & according to ET 500 list out of top four retail companies Trent ranked 3rd as
Pantaloon retail Shoppers shop Trent Provogue India
ARRANGEMENT
1. Ground Floor Cosmetics Page 128

Jewellery Watches Bags
2. Ist Floor Women Section Children Section Household items
3. IInd Floor (Men Section)
Casual Clothing Formal Wear Ethnic Wear Shoes
Private Brands in Westside
2F4U SRC Gia Urban angel Intima David Jones Ascot
To irrigate the space better Westside have the entrance on the ground floor and exit on the first floor. In case of visual merchandising all the category of clothes of all sizes and varieties are displayed and hence the consumption of space for shelves is reduced. And it is convenient for customers to choose and for the attendants to support buying. Profitability of Westside Delhi is Page 129

more than that in Pune and Bangalore because youth here have much spending power. It is also driven from strong demand backed by quality products and latest fashion. The trendy household section has a complete new range of bed linen in elephant motifs, floral motifs and paisley design. The color palette for the festive collection includes flaming orange, royal blue and other vibrant colors to depict festivity. The gift section has a plethora of gifts terracotta pots, urns, knick-knacks and diyas in beautiful colors, shapes and sizes. The store has also introduced a new range of furniture and other household goods, including cabinets, butler trays and mirrors in wood with an antique finish. An innovative range in wrought iron and rope has been introduced in utility items which include magazine racks, folding stools, jam pots on trays and Ganesha in brass and terracotta.
SERVICES & STORE ATMOSPHERE IN WESTSIDE

Pre-purchase services include accepting telephone & mail orders, advertising, window &
interior display, fitting rooms, fashion shows
It provides post purchase service including shipping & delivery, gift wrapping, adjustments & returns, alteration & tailoring It also provides ancillary services including general information, check cashing, parking, restaurants, repairs, interior decorating, credit etc.
The Westside stores wear a bright, festive look and, in keep with the mood of the season, hosting a festival bright. With the sole objective of rewarding its loyal customers for their patronage, Westside has lined up a bonanza of surprise gifts. Every shopper gets a scratch-and-win card which entitles them entry into a contest. Those making purchases above Rs 1,500 are also entitled to receive other pleasant surprises.
MARKETING MIX
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1. PRODUCT
The Westside stores have numerous departments to meet the varied shopping needs of customers. These include Menswear, Womens wear, Kids wear, Footwear, Cosmetics, Perfumes and Handbags, Household Accessories, lingerie, and Gifts. Some of them are as follows;
2. PRICE
Menswear: For men at work and at play, Westsides menswear range extends from
formal to casual to sporty. There is also a wide price range starting from value and extending into premium.
Womens wear: For women there are western casual, western formals & very classy
ethnic wear with a look unique to Westside. The range does not end with clothes but extends right into accessories with a great range of jewelry, scarves & other accessories. Also available are comfortable lingerie at affordable prices.
Kidswear: With a dash of attitude and a sprinkle of playfulness, Westsides
Kidswear has a huge range to select from. Catering to a wide age band starting from infants to early teens the garments sport a look that is hip, trendy and very international.
Footwear: The range encapsulates footwear for the entire family with a wide
variety of choice, great styles and colours to charm everyone. Cosmetic, Perfumes and Handbags: The Westside store has a separate section for cosmetics and perfumes in some stores. The handbags are tastefully crafted and range from casual to formal wear.
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Household Accessories: The Westside motto is -Your Dreams Our Vision-which
translates into a Household section that caters to every taste. This section is one ofthe most contemporary with every item being exclusive & unique. The merchandise is well coordinated & allows customers to mix & match and to create their own look. The range extends from bed linen, towels, table linens to coordinated crockery, a cook shop, glassware and much more to set up an entire home. The range also includes high quality home accessories and dcor product.
Gifts : A wonderful gift section with the trendiest of collections that will leave one
spoilt for choice. This section matches every requirement and suits every occasion. Westsides gift section is vast and includes gifts ranging from photo frames, candle stands, candles, vases, ceramic mugs, lanterns, lamps and more. 1. PLACE The company has 36 Westside departmental stores up till now (measuring 15,000 30,000 square feet each) in Mumbai, Bangalore, Hyderabad, Jaipur, Chennai, Pune, Delhi, Noida, Gurgaon, Ghaziabad, Kolkata, Nagpur, Indore, Ahmedabad, Lucknow, Ludhiana, Surat, Mysore & Rajkot. The company hopes to expand rapidly with similar format stores that offer a fine balance between style and price retailing.
2. PROMOTION
Westside does its regular brand building through advertisement in the mediawith brand ambassador Yuvraj Singh and other young models. More importants its inhouse promotions which peak during main festive seasons, summer, diwali and Christmas. The promotion are mostly them based, with decorations to match, live bands and other attractions.
CUSTOMERS
MEN
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While guys tend to prioritize fashion to a lesser degree than girls, right-look and the dude image is still important to them. Boys tend to spend more money on electronic gadgets, food, sports goods and music.
WOMEN
Teen girls represent a lucrative opportunity for retailers. They are going to become the future buyers. Teen girls are more trend savvy. Its not just the clothes and accessories, but the whole look that the teen girls aspire to define. Post teen girls spend more on jewellery and household items and thus they contribute a lot more in terms of revenue.
FACING THE CHALLENGE
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The greatest challenge for Westside in its quest for a place in the retail sun is not the competition from similar organized players, but from the unorganized sector (98 per cent of Indias retail garment industry operates in the unorganized sector).The other challenge for Westside is that the retail fashion business in the country is becoming increasingly crowded with new players, Indian and foreign. Among the new entrants have been Wills Sport, Lifestyle, Raymonds (Be), Primus Globus, Nike, Crocodile, Mango and the latest, Marks & Spencer.
PROMOTIONS
1. CLUB WEST CARD PROGRAM An assured return-and-exchange policy reinforces customer confidence in the chain. Another winning Westside idea is Club West, a customer loyalty programme launched in May 2001. The 30,000- plus members of this club get rebates at restaurants and on holiday packages from the Taj Group of Hotels, home delivery of alterations, and best of all, special shopping hours on the first day of any discount sales event organized by the chain. Important benefits of club west card Most attractive rewards shopping Instant use of the card Easy to operate Extra convenience Validity at all stores Westside does its regular brand building through advertisements in the media with brand Page 134

ambassador Yuvraj Singh and other young models; more important are its in-house promotions, which peak during the three main festive seasons: summer, Diwali and Christmas. The promotions are mostly theme based, with decorations to match, live bands and other attractions. 2. FASHION LOGY Westside has launched a new ad campaign titled 'Fashion Logy'. The campaign is designed to provide the buyer with not just clothing, but also guides and aid on dressing smart, styling and accessorizing. The campaign sees on-ground activities and promotions designed to interact with the consumer about their style It includes womens corporate wear, girls wear, and glam denim.
3.HSBC WESTSIDE CREDIT CARD:

More Rewards points for Westside shopping. Special offer on International spends. Complimentary Gift Voucher worth Rs 150/- on Joining. Other benefits on shopping at Westside stores. 24x7 customer access through Phone Banking
THE THREE Cs
Corporate clothing is a major component of Westside merchandise. The emphasis here is on the three Cs: Comfort, Crispness and Coordination, and the goal is to provide the complete corporate look, where color, clothes and accessories are mixed and matched in a manner that creates harmony between the person and the clothes he or she wears. Westside employees are given regular training for better interaction.Some things may take Page 135

longer. The wish list, a tool for customers to let Westside know their preferences, cannot be realized immediately.Only if there is an optimum demand can the store look at fulfilling it. Gia, Westsides brand for larger-sized requirements, was the outcome of one such need. The company identifies star employees in each store and designates them as coaches responsible for the training of their own store staff. Today, each store has three kinds of coaches a customer service coach, an IT skills coach and a product knowledge coach. The success of this programme has made it a benchmark for all Tata Group companies.
WESTSIDE PROVIDES FOUR LEVELS OF SERVICE
Self service- Self service is the corner stone of all discount operations. Many customers are willing to carry out their own locate compare select process to save money.
Self selection- Customer find own goods, although they can ask for assistance Limited Service- Westside also offers services like credit, merchandizing etc. Full Service- Sales people are ready to assist to any phase of the locate compare select process. Customers who like to be waited own prefer these types of stores.
CONSUMER PULL FACTORS

A critical factor in Westsides success has been its strategy to attract shoppers & keep them in stores- the amount of time shoppers spend in a store is perhaps the single most important factor in determining how much they will buy.In having understood the pulse of the customers in India,Westside has clearly established itself as a brand with an Indian heart. Page 136
Over the years Westside has also developed and successfully introduced a range of new brands especially suited to the Indian palate. These brands like 2F 4U have been a tremendous success amongst the new generation.What has also given Westside a competitive edge is that in addition to an extensive range of internationally renowned brands like Spykar, Lee and Fast Track they also offer the option of a less known brands for low budget customers.
All the three floors are carefully structured. Ist floor and IInd floor caters exclusively to Women and Men respectively. Thus giving them privacy and more freedom to look into their products.
Womens need more space and look for comfort. They are less likely to buy if the place is congested and makes them feel uncomfortable. At Westside sofas have been placed in the women section so as to make the females more comfortable.
Westside has been able to create a brand image and is consistently maintaining its brand identity by new additions in products and catering to the market need.
They are catering to different age groups under one roof. For ex. On the IInd floor which is mens section both formal and college wear is available. This way they are able to build a huge customer loyal base.
Westside caters to not only the clothing needs and desires of its customers. They have bed sheets, kitchenware, jewellery, perfumes, baby products, household items, etc. This way a customer who enters Westside just to buy one or two items usually ends up buying a lot more.
The in-store experience in Westside is very delightful. Their fully skilled and trained staff caters to the needs of the public in the right way. They dont pounce upon the customer as soon as he enters the store. They wait till the time a customer starts selecting and then Page 137

they come and help. This way the customer gets acclimatize with the store and the environment.
Price of brands available at Westside is not too high as compared to its competitors brands. This is due to their cost effective supply chain management. They directly pick up the goods from the manufacturer thus ensuring low price tag at their store.
FINANCIAL RESULTS INCOME STATEMENT

(Rs in Cr.)
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Mar ' 09 Income : Operating Income 511.73 514.16 452.00 346.44 234.31 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Expenses Material Consumed Manufacturing Expenses Personnel Expenses Selling Expenses Adminstrative Expenses Expenses Capitalised 256.59 23.43 39.47 77.20 106.27 0.00 272.50 21.09 36.96 72.27 93.03 0.00 240.41 15.92 28.80 64.49 69.30 0.00 177.80 12.37 20.60 47.71 52.74 0.00 117.04 9.68 14.86 32.34 40.55 0.00
Cost Of Sales
502.97
495.86
418.93
311.22
214.47
Operating Profit
8.76
18.30
33.07
35.22
19.83
Other Recurring Income
25.97
23.61
14.31
9.42
6.47
Adjusted PBDIT
34.73
41.90
47.38
44.64
26.30
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Financial Expenses Depreciation Other Write offs 4.33 9.23 0.00 4.29 8.85 0.00 3.98 7.91 0.00 2.94 8.00 0.35 1.34 4.54 1.01
Adjusted PBT
21.17
28.76
35.49
33.34
19.40
Tax Charges
3.07
4.74
9.41
9.91
5.31
Adjusted PAT Non Recurring Items Other Non Cash adjustments
18.10 6.61 2.05
24.02 8.56 0.29
26.09 5.49 0.83
23.43 0.95 0.00
14.09 5.08 (0.11)
Reported Net Profit
25.21
32.58
31.58
24.38
19.06
Earnigs Before Appropriation
50.78
47.58
45.87
39.65
34.27
Equity Dividend Preference Dividend Dividend Tax Retained Earnings
10.74 0.00 1.82 38.22
13.67 0.00 1.58 32.33
11.03 0.00 1.88 32.96
9.38 0.00 1.32 28.96
7.87 0.00 1.12 25.27
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BALANCE SHEET
(Rs in Cr.)
Mar ' 09 SOURCES OF FUNDS Owner's Fund Equity Share Capital Share Application Money Preference Share Capital Reserves & Surplus Loan Funds 19.53 0.00 0.00 587.23
Mar ' 08
Mar ' 07
Mar ' 06
Mar ' 05
19.53 0.00 0.00 586.30
15.76 5.01 0.00 371.73
14.43 0.00 0.00 255.17
13.12 0.00 0.00 204.02
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Secured Loans Unsecured Loans Total 165.50 0.05 772.31 65.50 0.10 671.43 65.50 0.17 458.17 65.50 0.22 335.32 0.00 0.26 217.40
USES OF FUNDS Fixed Assets Gross Block Less : Revaluation Reserve Less : Accumulated Depreciation Net Block Capital Work-in-progress 137.31 0.00 42.45 94.86 17.81 143.53 0.00 40.95 102.57 26.53 104.70 0.00 32.19 72.51 14.59 91.54 0.00 25.01 66.53 5.92 76.52 0.00 17.66 58.86 4.47
Investments
395.85
469.34
308.22
232.97
113.13
Net Current Assets Current Assets, Loans & Advances Less : Current Liabilities & Provisions Total Net Current Assets Miscellaneous expenses not written Total 414.60 150.80 263.80 0.00 772.32 216.62 143.63 73.00 0.00 671.44 172.70 109.85 62.85 0.00 458.17 142.80 112.89 29.91 0.00 335.33 107.47 66.95 40.52 0.41 217.39
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Note : Book Value of Unquoted Investments Market Value of Quoted Investments Contingent liabilities Number of Equity shares outstanding (in Lacs) 386.94 4.76 16.53 195.33 453.36 14.97 118.57 195.33 305.51 5.55 124.85 157.61 228.87 8.00 117.51 144.28 107.83 2.03 74.26 131.18
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QUARTERLY RESULTS
(Rs in Cr.)
Jun ' 09
Mar ' 09
Dec ' 08
Sep ' 08
Jun ' 08
Sales Other Income Stock Adjustment Raw Material Power And Fuel Employee Expenses Excise Admin And Selling Expenses Research And Devlopment Expenses Expenses Capitalised Other Expeses Provisions Made Operating Profit Interest Gross Profit
122.30 6.62 (2.43) 0.22 0.00 8.98 0.00 11.01 0.00 0.00 100.67 0.00 3.83 0.51 9.95
120.89 6.23 0.11 0.56 0.00 7.51 0.00 9.49 0.00 0.00 101.08 0.00 2.14 0.32 8.05
126.19 7.32 (6.24) 0.29 0.00 10.43 0.00 12.15 0.00 0.00 105.69 0.00 3.88 0.33 10.87
133.49 7.73 (8.13) 0.64 0.00 9.69 0.00 13.18 0.00 0.00 118.82 0.00 (0.70) 0.33 6.70
133.43 11.33 (14.37) 0.62 0.00 11.63 0.00 10.58 0.00 0.00 124.07 0.00 0.90 0.33 11.90
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Depreciation Taxation Net Profit / Loss Extra Ordinary Item Prior Year Adjustments 2.19 2.64 5.11 0.00 0.00 1.41 (2.48) 9.13 0.00 0.00 3.04 1.95 5.87 0.00 0.00 2.51 0.65 3.53 0.00 0.00 2.28 1.40 8.23 0.00 0.00
Equity Capital Equity Dividend Rate Agg.Of Non-Prom. Shares (in lacs) Agg.Of Non PromotoHolding(%) OPM(%) GPM(%) NPM(%) EPS (in Rs.)
19.53 0.00 132.52 67.84 3.13 7.71 3.96 2.62
19.53 0.00 132.52 67.84 1.77 6.33 7.17 4.67
19.53 0.00 132.52 67.84 3.07 8.13 4.39 3.01
19.53 0.00 132.52 67.84 (0.52) 4.74 2.50 1.81
19.53 0.00 132.52 67.84 0.67 8.22 5.68 4.21
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SHARE PRICES
Listings
BSE , NSE
Price
BSE code NSE code ISIN Face value Market lot
550.00
500251 TRENTEQ INE849A01012 10 1
Stock Data: Current Price (8/31/2009):

(Figures in
561.45
Recent Stock Performance: 1 Week 13 Weeks 0.9% 4 Weeks
Indian Rupees)
11.0%
52 Weeks
11.9% 8.8%
Trent Limited Key Data: Ticker: Exchanges: 500251 BOM Country: Major Industry: Sub Industry: 2009 Sales Currency: Fiscal Yr Ends: 7,845,275,000 (Year Ending Jan 2010). Indian Rupees March Employees: Market Cap: Shares Outstanding: INDIA Retailers Miscellaneous Retailers 550 10,865,173,400 19,532,896
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Share Type: Ordinary Closely Held Shares: 6,281,192
MARKET SHARE
The Companys flagship brand Westside, operates 36 stores across the country, and is set to open additional stores in the current year. Certain stores are expected to widen their offerings by the introduction of brands for the youth, attractive footwear, bakery outlets, stationery and exclusive fast moving furniture items during the current year. The Company expects that all these measures would help increase the footfalls in these stores. 2003-
23%
2008-28%
ORGANISATIONAL STRUCTURE
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F K Kavarana Chairman
B S Bhesania Director N A Soonawala Director K N Suntook Director A D Cooper Director
N N Tata - Managing Director Surti, Mehernosh- Company Secretary
OPERATIONAL STRUCTURE
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ORGANISATION STRUCTURE
FUTURE STRATEGIES OF WESTSIDE
Westside, one of largest and fastest growing chains of retail stores in India, is on an expansion path these days. The retail chain has just launched KIDSWEST, a kids program that incorporates learning with playing, in its stores operating in Delhi, Bangalore and Pune. Westside, Tatas leading chain of stores, is planning to adopt the franchisee route to expand its presence in tier-II and tier-III cities. Through this model, 25-30 franchisee-operated stores of across 8,000-12,000 sqft and with an initial investment of Rs 1.2 crore, per store would be set up in the next five years. With this move, it plans to reach out to consumers across 37 cities. Page 149

Trent-controlled retail chain Westside is planning to open 18 flagship stores in calendar year 2010. Market sources said that Westside, one of Indias fastest growing retail store chains, will target mostly tier II and III cities as part of its expansion plans for 2010, with flagship stores in the 40,000-50,000 square feet range. At least 80 per cent of the property acquisitions required for Westsides next phase of expansion have been wrapped up.
Trent is also set to launch its second Star One Global hypermarket (under the Star India Bazaar initiative) after Ahmedabad, at Vashi in sub-urban Mumbai.
ACHIEVEMENTS
Westside has garnered numerous accolades Balanced Scorecard Hall of Fame India Brand Summit Brand Leadership Retail IFA Visionary of the Year Award, 2002 Mrs. Simone N. Tata Most Admired Large Format Retail Chain of the Year - Lycra Images Fashion Awards 2005 NDTV Profit Business Leadership Awards 2006 - Retail Category
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PRESS RELEASE Westside opens 37th store in Nashik; plans 10 new stores this fiscal DATE: 14/05/09
http://www.business- standard.com/india/search_news.php?search= %20Westside&select=keyword Westside, the flagship department store format, lifestyle retail chain of Noel N Tata-led Trent Ltd, one of the two retail arms of Tata group, which currently operates 36 stores, recently opened its new store at Nashik in Maharashtra. The new store occupying a retail space of 24,000 sq ft is located in the Untwadi area of the growing commercial city. We are very proud to bring the Westside experience to the discerning customers of Nashik. The residents have been exposed to fashion and we hope to enhance this with our superior merchandise, service and an international shopping experience, said Smeeta Neogi, HeadPage 151

Marketing, Westside, on the occasion. Westside, which specialises in deriving most of its business from private labels, is present in 21 cities across India. Of the 37 stores being operated by the company across the country as many as 6 are located in Mumbai alone.The company, which achieved a sales turnover of Rs 499 crore ding 2007-08, is planning to expand operations of Westside retail chain by opening 10 new stores during the current financial year 2009-10. The new stores are likely to come up in the metro and growing cities of Mumbai, Hyderabad, Kochin, Faridabad, and Guwhati, among othe
CORPORATE SOCIAL RESPONSIBILITY
India is a youthful country where a large percentage of the population is in the younger age brackets. We believe that these young people shall be the backbone of the nation in the coming years. It is therefore our intention to focus on socially underprivileged children in order to provide them with a chance to have a better life tomorrow. We shall dedicate resources commensurate with our business requirements to community activities that work towards improving the future of socially underprivileged children. We shall also use our assets and our expertise in the retail business to further the cause of such communities. Were it not for the active participation of our customers, our social policy might never have been activated. We are truly grateful for their generosity in supporting our socially conscious endeavours. Page 152

LEND A HAND
Light a Diya, Help a Child Purchase a diya and light it at Westside during the Diwali Promotion. Funds collected will be donated to NGOs to help bringing smiles to the faces of underprivileged children. Angels Tree Purchase a Silver Star or a Gold Star during our Christmas Promotion, and decorate our Angels Tree. The money collected will be donated to various NGOs across the country working with underprivileged children.
SIGNIFICANT EVENTS
In 1998 Tata sold of their 50% stake in the cosmetic products company Lakme to HLL for Rs 200 Crore (approx. 45 million US$), and created Trent from the money it made through the sale. All shareholders of Lakm were given different shares in Trent. SIMON TATA, the chairperson of Lakm, went on to head Trent. Trent Ltd. operates Westside, one of Indias largest and fastest growing chains of retail stores that currently operate 29 stores in the major metros and mini metros in India. Westside, Tatas leading chain of retail stores has launched its Designer Development Programme (DDP) to encourage Emerging Talent of the fashion industry and provide them a mass retailing platform. A concept pioneered by Westside; this is a significant step to bridge the gap between exclusive designer wear and the fashion conscious Indian consumers.
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It is significant that Trent had in April this year entered into an agreement with The Xander Group Inc, a global private equity firm, to develop and manage an institutional retail real estate portfolio in India in partnership with Indian developers. The flagship stores planned next year will substantially improve possibilities for cross promotion between Westside and Landmark, the south-based books and music retail chain in which Trent had acquired 76 per cent stake in 2005.
CHAPTER - III
R ESEARCH M ETHODOLOGY
Page 154
Objectives Scope Methodology of Data Collection Limitations
Page 155
RESEARCH METHODOLOGY
s stated by Bruce W.Tuckman(1978), research is a systematic attempt to provide answers to the questions. Research is the original contribution to existing stock of knowledge for its advancement. It is a systematic method consisting of enunciating
the problem, formulating a hypothesis, collecting of factors or data and reaching to certain findings and conclusion. It is more of a formal, systematic and intensive procedure being carried on the scientific method of analysis.
OBJECTIVES OF THE STUDY

The main objective is to find out the hidden facts and to invent new facts to the existing stock which gives a scope for advancement. To have an in-depth knowledge about the industries as well as various companies which belong to a particular industry. To enhance our knowledge about their market share, growth rate and do a comparative analysis. To come to a common conclusion and analysis the best company in a particular industry . To serve as a book of knowledge for the readers and to make it very simpler and easier to understand. In order to induce the creative work and give a scope for others to do research. To discover the strengths, weakness, opportunities and threats of various companies.
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SCOPE
This may lead to a get a professionals degree in research. May create an enjoyment to the researcher to solve a problem. Would help in order to have a better knowledge and understanding about the corporate in near future. It may lead to get respectability to the researcher from the society. Motivation in research reciprocates the inventions and discoveries by one another. Motivation in research also to do research.
DATA COLLECTION METHOD

There can be various methods adopted for data collection. On the broader terms it can be classified as the primary data collection and the secondary data collection methods. The primary data collection methods include interview, having direct meets with the company officials or a questionnaire method and is considered as the first time investigation. Whereas the secondary data collection focuses on the collection of information from various sources like magazines, newspapers and website and are considered to be already collected. There are its own merits and demerits in various data collection method. In our study we have collected our data through the secondary means of data collection. We have referred various business magazines in order to do our comparative analysis and the main source of our information is through website, which helped us in getting a clear understanding of the company profiles, its history and other various information. We also have referred many other thesis on various companies which gave us an idea how exactly to about our research on our industry and other statistical data published in various newspaper which helped us to keep a track on the recent development and the future strategies adopted by the company as well as the present market share of the company.
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[INDUSTRIAL REVIEW PROJECT] 200 9 LIMITATIONS IN DATA COLLECTION

We could stick on only to the secondary data collections as we couldnt interact with the company officials due to their busy schedule. Being the it companies they dont reveal all the information on the websites but as per the requirements we have managed to get all the possible information.
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CHAPTER - IV
C OMPARATIVE A NALYSIS
Introduction SWOT Analysis
Page 159
COMPARATIVE ANANLYSIS INTRODUCTION
he companies which we all have received for industrial review project in retail sector are as follows : Big Bazaar Shopper Stop Marks & Spencer Westside
The comparatively analysis of all these four companies in not possible as they are not completely comparative to each other except SHOPPER STOP and WESTSIDE. Shopper Stop and Westside are giving tough competition to each other in ready-made garments sectors. Although Westside carries the brand name of TATA GROUPS but still Shopper Stop provides them a tough competition. Now- a- days Big Bazaar has also entered by introducing there brand DJ&C. It provides the clothes at a very cheap price, which is slowly becoming a tough competitor in the market. Big Bazaar slowly and steadily increasing its market share in this sector. Marks & Spencer are really not a competitor for companies mentioned above. It is an international brand. It was most affected by recession among others. It mainly deals with readymade garments and accessories. The company is trying hard to survive in the market After its JV with Reliance Retail its has strengthen its position its place in India but is still lacking behind its competitors as it has hardly opened a store in each major city of India. It is still yet to strengthen its place in the Indian market . Comparing all the above companies the largest market share in current scenario is held by Big Bazaar , it not only holds a great market share but also demands its authority in the retail sector Page 160

due its strong presence . Big Bazaar also with its brand ambassador as M S Dhoni has shown tremendous change in market selling ability. In places it has also been touted as Indias Wal-mart Shopper Stop on the other hand has improved its place in the market with a great re-branding which has seen the revival of this brand value that it held in its initial days. But after Re-branding the brands founder have seen sunlight again. They have improved from their sales and have got new brands with them , who sell their products in their store. They have also changed their logo with their re branding affects. All of this has gained them greater respect and a better positioned market which they want to have from many years . Their Home city which is Mumbai has also seen a great change in their sales. Whereas going to Bangalore , their second largest sales return , they have added new brands , changed their location and all of this has resulted in better sales . Westside, Indias fastest growing retail chain has done a lot to improve their market share . Unlike the above brands they dont focus on a particular target market on a particular market, they have something to focus for everything which is their USP. They have improved their market share from the day they have started. Unlike the above brands they have always looked to diversify their holdings in the market. They have a policy of opening a store in a particular location according to their customer wants .And all of this is done to increase the foot movement in their stores. Coming on to Marks & Spencer, a big international player hasnt shown such great movement in the market share in India from the time it has opened in India. It always target people walking into big malls , basically opening their market only to a smaller lot of people unlike the above brands who cater to all the people . But due to its great experience it has in the retail sector , it has recently joined hands with Reliance Retail , which gives it a great future. Thus this is one brand which NEEDS TO BE LOOKED ON IN THE FUTURE.
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SWOT ANANLYSIS
BIG BAZAAR
Strength:
High Brand Equity in evolving retails markets State-of-art infrastructure of Big Bazaar outlets POP to increase the purchase One stop shop for variety of products, increasing customer time and available choices
Weakness:
Unable to meet store opening target so far Falling revenue per square feet
Opportunity:
Organized retail is just 4.15%of total pie of Indian retail market Evolving Customer preferences in recent years.
Threat:
Competitors, global big players planning to foray into market Government policies are not well-defined in India Unorganized retail market of India
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MARKS & SPENCER Strengths

M&S were renowned for their attention to detail in terms of supplier control, merchandise and store layout The success of M&S under Simon Marks was often attributed his understanding of customer preferences and trends Provide highest standards of quality Suppliers use the most modern and efficient production techniques.
Weaknesses
Stocked generic clothing range with wide appeal to the public: buyers often had to make choices, which would outlast the fashion and trends seen in other high street retailers This lagging behind in case of introducing up-to-dated fashionable clothing to keep pace with the environment actually made them vulnerable to their competitors They always used British suppliers believing that it would give them highest quality with low costs but actually sometimes made them weak to challenge its competitors Some competitors are using overseas suppliers to keep the costs down
Opportunities
To survive in todays world globalization is important. M&S have a wide opportunity to go more global to improve and expand its business. They also have the opportunity to consider more overseas supplier which will actually give them cost advantage, rather than suppliers available on a local level. They also have the opportunity to maximize the use of available technology to improve their functioning and to gain competitive advantage.
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Threats
They are in strong competition with Gap, Oasis and Next, who are offering similarly priced products yet more fashionable. M&S is also in competition from discount stores like Matalan, and George range at Asda. M&S is also in threat from Tesco and Seinsburys who moved into offering added value foods, which had been pioneered by M&S.
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SHOPPER STOP
Strengths:
Pioneer in departmental format. Loyal customer base. Low risk and sturdy business model. Healthy financial position, low gear. Presence across retail segment, lifestyle, value and specialty retailing.
Weakness:
Competition from standalone specialty stores. Late foray into value retailing with 51% stake in promoter owned company. High spend on store makeovers and interiors to ensure pleasant shopping experience.
Opportunities:
Expected 30% CAGR in organized retail to result in better footfall and conversion rates. Entry into tier 2 and tier 3 cities. Collaboration with foreign players because of national brand.
Threats:
Employee shortage and attrition due to rapid growth in retail industry. Impact of slowdown on consumer spending in felt on retail stores. Opening up of economy for free entry foreign players.
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WESTSIDE
Strengths:
High quality, latest in-style products, international shopping experience value for money pricing loyal following Own brand of merchandise, which is both trendy and individualistic. new introductions every week variety of designs and styles exciting mix with a range extending from stylized clothes, footwear and accessories for men, women and children to well-co-coordinated table linens, artifacts, home accessories and furnishings. Well-designed interiors, sprawling space, prime locations, lovely coffee shops add to the customers shopping experience.
Weakness:
Needs to expand faster to maintain market share Size of the stores should be increased to stock more products. Targets the middle-class segment. Higher class customers do not prefer west side. Trent limited may not be able operate west side efficiently due to its other operations.
Page 166
Opportunity: 1. The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by 2010 making India one of the largest consumer markets of the world. The IMAGES-KSA projections indicate that by 2015, India will have over 55 Crore people under the age of 20 - reflecting the enormous opportunities possible in the kids and teens retailing segment. 2. Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by 2010. 3. Percolating down : In India it has been found out that the top 6 cities contribute for 66% of total organized retailing. While the metros have already been exploited, the focus Has now been shifted towards the tier-II cities. The 'retail boom', 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. 4. Rural Retailing: India's huge rural population has caught the eye of the retailers looking for new areas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of products from FMCG to electronic goods to automobiles, attempting to provide farmers a one-stop destination for all their needs." Hariyali Bazar" is started by DCM Sriram group which provides farm related inputs & services. The Godrej group has launched the concept of 'agri-stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed along with the required knowledge for effective use of the same to the farmers. Pepsi on the other hand is experimenting with the farmers of Punjab for growing the right quality of tomato for its tomato purees & pastes. Page 167
Threats: 1. If the unorganized retailers are put together, they are parallel to a large supermarket with no or little overheads, high degree of flexibility in merchandise, display, prices and turnover. 2. Shopping Culture: Shopping culture has not developed in India as yet. Even now malls are just a place to hang around with family and friends and largely confined to window-shopping. 3. Cultural Variation leads to variation in merchandise in India at different geographical locations. 4. Competition from future group and various other retail stores which are growing rapidly.
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BIBLIOGRAPHY
Big Bazaar
.
Google.com Wikepedia.org Hinduonline.com Futurebazaar.com Bigbazaar.com business.outlookindia.com Frontline magazine vol: 24, issue: 13 Fmcg-marketingblogspot.com Investopedia.com Busniessstanard.com Scribd.com Netashare.com Slideshare.net Indiatoday.com www.ibef.org/industry/retail retailindustry.com
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Marks & Spencer

http://www.marksandspencer.com/ http://www.marksandspencerindia.com/index.php Google.com Wikepedia.org Busniessstanard.com News.cnet.com business.timesonline.co.uk/tol/business/industry.../article3430556.ece http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/2788498/Marksand-Spencer-joins-with-Reliance-to-open-50-stores-in-India.html http://news.stv.tv/uk/88167-ms-lost-clothing-market-share-in-feb/ http://tutor2u.net/business/marketing/market_analysis_marketshare_intro.asp
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Shopper Stop
www.shoppersstop.com
wikepedia.com religare.com Busniessstanard.com
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Westside
http://www.mywestside.com/
http://www.contentlinks.asiancerc.com/tata/FundaReports.asp? ReportType=PL&Companycode=12520005&TickerName=Trent&CompanyName=Trent%20Ltd http://www.google.com/finance?client=ob&q=BOM:500251 http://www.naukrihub.com/india/retail/top-companies/westside/ http://www.noeltata.com/about-westside.html
http://markets.ft.com/ft/tearsheets/businessProfile.asp?s=271813
http://economictimes.indiatimes.com/photo.cms?msid=3911091 http://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C356FP730 http://www.tata.com/company/Media/inside.aspx?artid=DJEi6XE/ewk=
http://www.business- standard.com/india/search_news.php?search= %20Westside&select=keyword

http://www.fibre2fashion.com/news/company-news/westside/ www.hindubusinessline.com http://en.wikipedia.org/wiki/Trent_(Westside)
http://info.shine.com/company/Trent-Ltd/334.aspx
http://www.rupeetimes.com/credit_cards/hsbc_bank/westside_credit_card.html
matt haig.pdf
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CONCLUSION
hat, How and In this report we have analyzed in detail the retail industry in India. We had initially started with the evolution of the retail sector in India, then moved onto its size, distribution and the growth of the retail sector.
We have also covered issues like the Foreign Direct Investment in the retail sector, the untapped opportunities that exist in the retail industry in India. We have also discussed about the bottlenecks that the retail industry is facing in India, online retailing in India and the role of Information Technology in the retail sector in India. In this section we have coined down the major findings of our research.
Major Findings
1. The Retail Sector in India can be split up into two, the organised and the unorganized. The organized sector whose size is expected to triple by 2010 can be further split up into departmental stores, supermarkets, shopping malls etc. 2. In terms of value the size of the retail sector in India is $300 billion. The organised sector contributes about 4.6% to the total trade. 3. The retail sector in India contributes 10% to the Gross Domestic Product and 8% to the employment of the country. 4. In terms of growth the FMCG retail sector is the fastest growing unit and the retail relating to household care, confectionery etc, have lagged behind. 5. The foreign retail giants were initially restricted from making investments in India. But now FDI of 51% is permitted in India only through single branded retail outlets. Multi brand outlets are still beyond their reach. Again they can only enter the market through franchisees,. This was how Wal-Mart had entered joining hands with Bharati Enterprises. 6. On line retailing is still to leave a mark on the customers due to lacunae that we have already mentioned. Page 173
CHALLENGES BEFORE INDIAN RETAIL INDUSTRY Retailing in India:

A challenging opportunity ... I will say that if you're alive you've got to flap your arms and legs, you've got to jump around a lot, for life is the very opposite of death..... Every game is a knife-edge balance between reward and risk. Rewards are received at the end of the game if one has borne all the risk and are alive and kicking till the end. Indian retailing industry has been looked upon as a dream come true but for many entrepreneurs it has become a nightmare. In this study we make an attempt to jot down the various problems concerning the Indian retail sector. Since a boon from one's viewpoint may be a curse from another's, so we have tried to ignore all types of biases. In some cases suggestive measures are also suggested. These measures are surely not mutually exclusive but may be (informally) collectively exhaustive.
Conspicuousness and eccentricity of Challenges Major Challenges

1. Amalgamation or Confusion- According to Tata Strategic Management Group, India has a high density retail structure of 1 retail outlet per 90 people and is the 9th largest retail market in the world. But the structure of the retail industry in India is in utter jumble. The parallel operation of convenience stores, supermarkets, hypermarkets and specialty stores in the economy is bewildering. According to the 'Wheel of Retailing Theory', certain loopholes in one of the forms of marketing can get communicated to other forms also. 2. What to sell- Another bemusement is the category of items to be offered. According to Page 174

researches, 41 percent of total consumption expenditure goes to the segment of food and groceries and it accounts for 77 percent of total retail sales. So it is obvious that this is the most preferred section of retailers. But unfortunately the foible taste bias for 'wet market' (i.e. fresh food available through hawkers) has marred this prospect also. Therefore supply chain management, storage of fresh perishable foods and persuading the customers that the food is inexpensive despite being fresh are genuine challenges to the newcomers. Diversifying the product base to consumer products such as readymade garments, furnitures, mobiles and computers can mitigate the losses, if any from food marketing and also broaden the reach to consumers. 3. Nostalgia- Indian shopping habits are no different. People tend to attach qualities like honesty, fair price, good behaviour etc. to shopkeepers with whom they have been dealing right from childhood. They find no reason to go to a distant megastore without any genuine reason. This problem is difficult to deal with as it demands a change in long-formed mindset. Organised retail outlets can overcome this problem by employing eligible local peoples who can interact in vernacular language and win the confidence of people. 4. Information Technology- This is a major problem and India must act fast if it wishes to create a smooth field for organized retailing. Digitization of services will make transfer of goods easy and an improvement in supply chain management will definitely play a significant role in attracting more consumers and less consumer grievances. Besides, it will generate easier payments option for customer and easier money movement for the CEOs of these highly diversified malls.
Minor Challenges
1. Human resource crunch- the concern for insufficient manpower in the industry has been in news for the last few months. This fear is somehow unfounded. The retail industry according to recent reports is growing at a rate of 100 percent. Kishore Biyani's Future Group i.e. the Big Bazaar chain of retail outlet alone provides employment to more than 18,000 people and is Page 175

planning to expand its employment base to 34,000 by June 2008. If we add to this the foray by mega players like Reliance and Bharti-Walmart then the fear can surely turn into a misperception. Retailing mainly deals with hard-selling of space, trade of stocks and building of relationships. Since most of the openings are for front line shop people, a graduation will suffice. Nowadays many institutes also provide post-HSC and post-graduate retail-specific courses. 2. Hindrances from government- Some political parties want the government to amend laws and improve curbs so that the mega players can't openly decimate the unorganized retail sector. This is a conclusion based on a myopic outlook and must be amended for a long term strategy. The fear is baseless because of the reasons mentioned above. The megastores will no doubt provide employment to the less educated masses. Also taking business away specially from small food vendors is more easily said than done. Instead the limiting move will send wrong signals to the investors and will ward off investments when the states need it most. Allowing 51 percent retail FDI in single brand retailing is a welcome move in this direction. It is expected that the government will create further opportunities for the organized retail to come up as home grown investment is always sweeter than foreign investment. The advent of organised retailing in an economy where spending power is growing fast and Tier II as well as Tier III town dwellers are becoming brand conscious is sure to bring a revolution in the retail sector.
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Content No.: Chapter I - Introduction To Industry

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TABLE OF CONTENTS

Chapter II Company Profile

Chapter III Research Methodology

Chapter IV Comparative Analysis

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Size and contribution of the retail industry in India

The Indian Retail Industry Sky is the limit

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Retailing in India: the present scenario

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Retail Sector's share in GDP (in %)

India USA China Brazil

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Retail sectors in neighboring countries:

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Retail Distribution in India

Propagation of the retail sector:

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Number of stores per 1,000 people

India Japan USA

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RETAIL SECTOR GROWTH IN INDIA

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Growth of Consumer Durables

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Penetration of organized market: A matter of concern

The present foray and its implications

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government in Delhi NCR(National Region) has for

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Penetration: Ways for improvement

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Recent News on FDI in India

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Bottlenecks to FDI in Retail Industry

Government Intervention in Indian Retail

Entry of large players: stiff opposition from Left Parties

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The Actual Scene

IT Trends in the Retail Sector in India IT in Retail: What's Hot

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Traditional retail sector:

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Problems with the Payment System

Problems with Shipping

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Products offered at discounted rates

Some online retailing sites in India

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Future of E-retailing in India

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