CASE STUDY ON VISHAL RETAIL

DEEPA.B Click to edit Master subtitle style SOWMYA SURAJIT

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MODERN RETAIL STRUCTURE:It includesMalls like Ansal Plaza (New Delhi), Nucleus (Pune), Centre Stage (Noida) etc Discount Stores like Brand Factory, Loot, M&B Factory, Subhiksha, Big Apple, and Reliance Fresh.
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Department Stores like Shoppers

PERCENTAGE OF ORGANIZED RETAIL:USA - 85% Taiwan - 81% Malaysia - 55% Thailand - 40% Brazil - 36% 6/5/12

GROWTH OF RETAIL SECTOR

The following are the reasons for growth of retail sector in India: Increase in disposable income of consumers, Increase in consuming desire, Low share of organized retailing. Purchasing power of Indian urban consumer is growing and branded merchandise in categories like 6/5/12 Apparels, Accessories, Food, and

Current scenario

Modern Large-Format retail, efficiently connects the producers and the consumers and is helpful to both in the long run. In India there is a huge wastage of fresh fruits and vegetables. In this scenario, the Large-Format Retail provides all important infrastructures to carry the farm produce to the consumers with lesser wastage. In 6/5/12 this way the farmers get better

KEY TRENDS:

The existing players like Big Bazaar, Shoppers' Stop, and Vishal Mega Mart are expanding to smaller towns and cities. Many other business houses are planning to enter the retail sector either on their own or through partnerships. New entrants like Bharti pvt ltd and Wal-Mart are going to enter the 6/5/12 market soon. Even rural areas will

VISHAL RETAIL PVT. LTD. HISTORY

Started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta). Today a conglomerate encompassing around 183 showrooms in 110 cities / 24 states. Indias first hyper-market has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi 6/5/12 this store boasts of the singe largest

VRPL BUSINESS:s

VRPL started as a retailer of readymade apparels in Kolkata in 2001. In 2003, VRPL acquired the manufacturing facilities from Vishal Fashions Private Limited and M/s Vishal Apparels. Subsequently, with evolution of retail industry in India and change in consumer aspiration, VRPL diversified their portfolio of offerings 6/5/12

VRPL endeavor to facilitate one-stopshop convenience for their customers and to cater to the needs of the entire family. VRPL believe this concept has helped them grow to their current size within a short time frame of 8 years. In order to reduce costs and take advantage of economies of scale 6/5/12 VRPL have embarked on backward

VRPL achieved total sales of: Rs. 1005.31 cr for fiscal 2008, as opposed to a turnover of Rs.602.65 cr for fiscal 2007 and Rs. 288.46 million for fiscal 2006. During the same period VRPLs profit after tax was Rs. 40.64 cr, Rs.25.07 cr and Rs. 12.39 cr, respectively.
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Growth plans

Vishal Mega Mart, a Delhi-based hyper market retail chain will invest close to Rs 1,250 crore . The chain is targeting 220 outlets, taking its cumulative retail space to 50 lakh sq ft. The chain is eyeing a sales turnover of Rs 5,000 crore by '12

"We have signed 32 deals for real 6/5/12

The chain, which was concentrated in north India, now wants to spread in the west and south as well. As many as 11 deals for this year are in the two regions. It includes Bangalore and Hyderabad in the South and Ahmedabad, Vadodara, Nasik, Goa and Aurangabad in the west. While funds will mainly come from internal accruals and loan funding, the company is waiting for the stock 6/5/12 market to stabilise before it

New format

Vishal Retail which clocked sales of Rs 288 crore last year, is all set to meet its sales target of Rs 700 crore in the current year. V2 is different from Vishal Retail. While Vishal Retail was serving the low-income segment in which consumption of fashion products is low, V2 will cater to the middleclass. V2 a value retail concept. 6/5/12 "Everywhere we are saving money.

V2, which stands for "value and variety", will sell fashion garments at prices 50-70% lower than other clothing brands through large stores between 12,000 and 25,000 sq ft in size. Seven V2 stores are operational in the country, four in Delhi-NCR, two in Himachal Pradesh and one in Jharkhand.
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The company is looking to open 8-10

Factors for failure:

Agarwal set up his first Vishal Garments store in Kolkata in 1994, three years before Kishore Biyani's Pantaloon Retail. In 2001 he moved to Delhi to launch Vishal Retail, taking it public in June 2007 to raise 110 crore. The company then opened several stores using short-term debt and borrowings of over 600 crore. Vishal Retail's troubles began in late 6/5/12 2009 when it couldn't repay loans it

From the 70 crore he's got, Agarwal is repaying 60 crore to SBI, HDFC and Pegasus, an asset reconstruction company that had bought out Barclays Bank's loans to Vishal Retail. He will pay off another 20 crore in outstanding interest by selling four properties in Kolkata, Hubli, Jabalpur, and Dehradun.
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For someone who's barely recovered

Then there is Chirag Simaria of Maitri Garments who says he'll think twice before doing business with Agarwal. "Vishal Retail had ordered merchandise worth 25 lakh from us in 2009, but later returned half of unsold items after Diwali," says Simaria. If approached, he says he'll insist on an upfront payment of at least half the amount instead of the 6/5/12 60-90 day credit line he used to offer

Growth plans

Vishal Mega Mart, a Delhi-based hyper market retail chain will invest close to Rs 1,250 crore . The chain is targeting 220 outlets, taking its cumulative retail space to 50 lakh sq ft. The chain is eyeing a sales turnover of Rs 5,000 crore by '12

"We have signed 32 deals for real 6/5/12

The chain, which was concentrated in north India, now wants to spread in the west and south as well. As many as 11 deals for this year are in the two regions. It includes Bangalore and Hyderabad in the South and Ahmedabad, Vadodara, Nasik, Goa and Aurangabad in the west. While funds will mainly come from internal accruals and loan funding, the company is waiting for the stock 6/5/12 market to stabilise before it

Findings & complaints

The study finds that service plays a very important role in the retail sector People specially housewives used to purchase household items in retail outlets like Vishal Mega Mart. Discounts and promotional schemes plays a very important role in attracting the crowed to the malls.
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Vishal Mega Mart losing its identity in

Recommendation:

Vishal mega Mart should concentrate more on services to the customers. Vishal Mega Mart should provide more promotional and discount schemes on various occasions Vishal Mega Mart should have to increase the range of household items Customization of clothing should be given an important consideration. 6/5/12