Presented By

Uday Mishra
GSBA Gr. Noida
ukmishra85@gmail.com

9891683518

August 11, 2014 1
DEFINING RURAL INDIA
RURAL RETAIL SCENARIO IN INDIA
REGULATIONS AND POLICIES IN RURAL RETAIL
SIGNIFICANT PLAYERS
1.goderj adhar
2.itc -chaupal
3.hariyali kisan bazaar
BUSINESS MODEL OF ITC
IMPEDIMENTS & RECOMMENDATIONS
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Census of India defines Rural Settlements
as......

Population lower than 5,000 persons

Population density lower than 400 persons/sq. km

At least 75% of male population engaged in Agri. activities.
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RETAIL TOWARDS RURAL AREAS
GREAT OPPORTUNITIES FOR MARKETER
THE INDIAN RURAL MARKET
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2014 4
Rural India consists of 720 Million consumers
across 6,38,000 villages

---17% of these villages account for 50% of the
rural population and 60% of the rural wealth

----Extensive reach is required as to cover 50%
market 1,00,000 villages must be catered Immense
opportunity amounting to US$ 125 billion
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Rural Retail is growing @ 7% p.a.

Rural consumption is also shifting from basic food
grains to fruits, vegetables, dairy and poultry
products, as well as beverages

Demand for better quality food leading to huge
demand for basic foods

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The Rs 140,000 crore rural retail market is expected to cross
Rs 180,000 crore mark by 2010, And up to Rs 240, 000 crore
by 2015 (CII).

The rural revolution is driven by
Rising purchasing power,
Changing consumption patterns,
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increased access to information and
communication technology,

improving infrastructure

increased government initiatives to
boost the rural economy,
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OCCUPATIONS URBAN RURAL
Cultivator 5 40
Petty
Shopkeeper
15 5
Wage
earner
20 35
Salary
earner
40 20
Others 18 8



US China India
Total Retail 2325 323 180
Value $ bn


% Salience to above
Traditional 15 80 98

Modern 85 20 2










Source: Census 2001, IRS 2006, AC Nielsen
Source: AC Nielsen
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Is a value seeker
Seeks comforts and amenities
Does not wish to be seen as the
deprived cousin.
Does not experiment easily but
this does not mean that he would not change.
Values local relationships because
of unfavourable past experiences
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1. Essential commodity act: The fertilizer industry is
centrally regulated by the government through an
administered pricing mechanism & sales allocation under
Essential Commodities Act (ECA). In the year 2002-03, the
government announced a long term Pricing policy for urea.

2. Indian Land Acquisition Act 1894

3. Agricultural Produce (Grading & Marking) ACT, 1937
(ACT No. 1 of 1937)(as amended up to 1986)

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54 Non Agricultural Use Clearance--


5. Under PN4/2006 --100% FDI is allowed through the automatic
route in -Floriculture, Horticulture, Development of Seeds, Animal
Husbandry Pisciculture, aqua-culture, cultivation of vegetables,
mushrooms, under controlled conditions and services related to agro
and allied Sectors.

6. Intra state agricultural land taxes -- vary, prompting the current
finance-minister to moot for a common GST (Goods and services tax) which
would help in bringing all the various state taxes under a common fold
including the agricultural income taxes levied individually state to state.

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GODREJ ADHAR

ITC-CHAUPAL

HARIYALI BAZAAR
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FORMAT OF GODREJ ADHAR
FMCG products, fertilizers, animal feed, etc. Services
like banking, insurance, pharmacy, postal services and
petrol pumps
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services offered
crop advisory services, soil & water
testing services; buy back of output,
crop finance, supply of agri inputs
and animal feeds, transfer of
information (weather, price, and
demand supply), door delivery of
products etc.
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A COMPLETE SOLUTION PROVIDER FOR THE
INDIAN FARMERS
provides professional
guidance with an objective to
improve productivity, higher
returns and improved cost benefit
ratio.






24 outlets in eight rural locations across the country and each
outlet services 20 villages in its vicinity

Godrej Aadhar has already forged JVs with Apollo Pharmacy,
Tata Agrico, Bajaj Allianz Life Insurance and HPCL for value
added services at the outlets.

The company plans to set up more than 1,000 stores by 2010.

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The Trusted Rural Business Hub
Help the customer increase his income, educate the
customer, before you sell to the customer
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Hariyali Kisaan Bazaar

Mr. Ajay Shriram, Chairman
Mr. Vikram Shriram, Vice Chairman & MD

The concept aims to simplify the

Private label seeds

Contract farming vegetables

Procurement
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DSCL plans to expand to 250-300 outlets by the end of FY
2008-09.

Each store covers an area of 3-4 acres and is managed by a
team of 7-8 people whom the Company trains continuously.

It offers the rural household all farming and consumer
products and related services along with financial services
under one roof.

The company also launched credit services during its second
quarter 2007-08, in association with HDFC bank, providing
loans for various purposes.
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Hariyali Kisaan Bazaar
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The number of Hariyali outlets now stands at 177, which the
company plans to scale up aggressively to around 300 outlets
by March 2009. Launched in 2002-03

Hariyali is now present in 8 states across India

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This concept aims to

Provide the power of expert knowledge
to even the smallest farmer

2. Information helps farmers secures
better price, quality and productivity
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Benefits to farmers include

Better purchase price of agri-inputs

Avail information on best farming practices

Command prevailing market prices

4 million farmers benefited through 6,500
installations covering around 40,000 villages
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By 2012, ITC Vision is to cover 100 thousand villages,
which represent 1/6th of rural India, and create more
than 10 million e-farmers
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IDEA BEHIND CHAUPAL SAGAR

-- MAKE THE POTENTIAL CUSTOMERS

--PROVIDE DIFFERENT CUSTOMER SERVICES

--REAP THE BENEFIT FROM POTENTIAL CUSTOMER

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A WIDE RANGE OF PRODUCTS FOR ALL SEGMENTS

TRAINING FACILITIES FOR FARMING COMMUNITY
ON SCIENTIFIC FARMING PRACTICES

GODOWNS FOR STORAGE OF FARM PRODUCE

INFORMATION CENTER FOR ONLINE WEATHER
INFORMATION

CONTINOUS SERVICES FROM 6AM- 9PM


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ESTABLISHMENT OF ATMs AT MALLS

AVAILIBILITY OF INSURANCE PRODUCTSFOR
FARMERS

TIE WITH PRIVATE HEALTH CARE SERVICE
PROVIDER FOR PRIMARY HEALTH CARE FACILITY

TIE WITH BPCL FOR FUEL PUMPS

ESTABLISHMENT OF SOIL TESTING LABORATRIES

PUBLIC ENTERTAINMENT


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ITC
FARMERS
INSURANCE
COMPANY
AGRI-INPUT
COMPANY
AGRICULTURE UNIVERSITIES/STATE
AGRICULTURE DEPT
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o Increasing costs of land
o Pace of expansion
o High operating costs
o Low margin of agri-inputs
o Low purchasing power of consumers

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Lack of literacy and awareness
Low per capita income
Wide geographic spread.
Gaps in road and Telecommunications connectivity.
Lack of reliable electricity and water supply
Limited Distribution network for example cold
storage.
Competition from local players
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Farmers get agri-inputs at competitive rates and
have range of products to choose from

Increasing rural bank aid (loans) helps improve the
purchasing capability of farmers

Farmers avail of the services of agronomists to
improve their farming practices, thereby impacting
on their final produce

Farmers get a better price for their products and
avoid middlemen
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Integration of rural initiatives into business model like
ITC

Corporate should supplement government efforts &
resources (infrastructure development, education system,
storage)

Creating retail stores which should be rural in nature so
that the rural masses identify themselves with these
stores.

Innovative & Exciting Initiatives such as Village BPO
should be given impetus to tap the talent in the rural
India.
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During the first millennium AD, merchants referred
to India as the Bird of Gold, due to the glittering
dynamism of its market. Over the next few years, the
Bird of Gold is poised to take flight once again.
THANKS
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