During the first millennium AD, merchants referred to India as the Bird of Gold, due to the glittering Amity

Business dynamism of its market. Over the next few years, theSchool Bird of Gold is poised to take flight once again.

Amity Business School

Aadhaar Retailing Limited ( ARL )

Presented by: Abhijnan Basu Pushpraj Laleet Reena Dohare Richa Grover

Aadhaar Retailing Limited ( ARL )

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The Company Profile Aadhar Retailing Limited operates as a rural retail chain. Aadhar Retailing Limited formerly operated as a subsidiary of Godrej Industries Ltd. As of March 31, 2008, Aadhar Retailing Limited operates as a subsidiary of Pantaloon Retail (India) Ltd.

Snapshot of Aadhaar
Founded in 2003 by Godrej Agrovet Ltd. Merger with Future Group in 2008. Total employee Strength: 1000

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Mission: Aadhaar shall operate Cash n Carry stores and create franchisee stores that offer the consumers quality products, choice, value and transparent pricing. Aadhaar shall create entrepreneurship opportunities in rural and semi urban India. Products: farm outputs like wheat and paddy, provides farmers with solutions to problems regarding their agricultural output, techno-commercial suggestions to help them give a better output, agriculture related product, non agriculture product like F.M.C.G., consumer durables, grocery.

Aadhaar Retailing Limited ( ARL )

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The Demography

Current position:
Total Number of Store: 51 Presence in States: Maharashtra, Gujarat , Punjab and Haryana

The Future Plan:

Future Group is now planning to open 50 wholesale stores in the next four year. These wholesale stores will be based in district headquarters and operate through 300 franchises each. The process of enrolling village franchises has already started through Adhar . It is planned to enlist 20,000 franchisee outlets in villages that would be serviced by the wholesale stores. The group had planned capital expenditure of Rs 800-900 crore over the next three years and will add eight to nine million sq.ft of retail space.

Aadhaar Retailing Limited ( ARL )

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Mergers: The Growth Strategy

Opened as a subsidiary of Godrej Agrovet Ltd. In 2003. Merger with Future Groups rural Retail venture on 31st March 2008. The Merger was done with a vision of retaining 30% direct stakes by Godrej and 70% by Future Ventures Ltd. The main aim was to exploit the reach of Godrej Agrovet in Rural India with a well organized retailing distribution and supply chain of Future Group.

Current Equity Sharing :

Future Ventures India Ltd will have 50% stake in Aadhar Retailing. The remaining stake will be held by Godrej and private equity players. Godrej Industries Limited may hold slightly less than 30% direct stake in the wholesale venture of Future Group. Rabo Equity(an FDI stake) is planning for acquiring stakes in Aadhar Retailing Limited.

The Retail Model

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Innovation in Marketing Strategy

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I think there is a big need for farm services and increasingly corporate will have to address this area, Godrej Industries managing director Nadir B Godrej told FE.

The company has test launched the concept in Maharashtra.

They are selling farm inputs like animal feed and fertilisers from group company Godrej Agrovet.

The company is now wholesale format in Aadhar that will stock agro produce and daily needs.

Each will have 300-400 franchisee stores, and Aadhar retail will buy from it. The model will be replicated across India, mostly in the agriculture belts, he said. Each of the wholesale stores will have around 1600 stock keeping units (SKUs) against typically 100,000 SKUs in a Big Bazaar .

The Sales Initiative

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Extended Service timing during morning and Evening.

(Rational: Footfall of Farmers inflate considerably during morning and Evening)

FMCG products displayed at basement.

(Rational: To increase visibility of the products sold and habituate the customer with organized retail purchase environment)

Works as One stop solution for rural consumers and farmers.

Associating with the Rural Indian consumers by organizing special events (Viz. Screening Hanuman the animation movie to
celebrate Kisan Divas on December 23.)

The 4Ps
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Place
The place of the stores are selected strategically in the nodal centers/ district centres with proximity of a number of village by considering the Business Index value for the prospected villages.

Price
The pricing is done in an extremely cost conscious manner, targeting the purchase capability of the rural population. Direct contact is established with the supplying companies to increase margin by shortening the value chain.

Product
The products includeAgricultural Inputs( Seeds, Fertilizers, Machineries, Pesticides) Animal Feeds FMCG Products. Consumer Durables. Extension Services( Technology Demonstration, Controlled Cultivation, Farm Visit By trained Extension Workers, Spot Demonstration, Help I acquiring Financial Aids and Insurenses)

Promotion
The Promotion techniques IncludeLive Demonstration of Best Agricultural Practices. Association with the emotion of the rural Population by innovative and Interactive Events.

Comparative Analysis

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Amity Business School

Triggering Rural economy