India Retail Report Synopsis

Backgrounder:

The India Retail Report 2007 aptly documented 'Opportunity India Retail';
published by the IMAGES Group and released by Mr. Kamal Nath, Hon'ble
Commerce & Industry minister, Govt. of India in January 2007, the research
volume set benchmark figures on Indian retail, while sizing up the entire market
with its key segments, scope and performance of key players across categories
and formats.

Under the aegis of India Retail Forum (IRF), for the first time, the entire retail
industry and some of the world’s top global research & consulting firms came
together for a detailed study of the Indian retail industry. The book, which
became a best seller across all titles of books in major book chains, also carried
detailed analytical articles by 40 thought leaders from the industry and the
government.

While the hard copies became must-haves for every CEO connected with Indian
retail, the CD version with navigation facility, tables, graphs, pictures of
hundreds of stores and shopping centres emerged as the most user-friendly tool
for top level executives for use in corporate PPTs. Copies of the book were
ordered from possibly every corner of the world -- reflecting IMAGES'
capability of spreading the India retail story across the globe.

The past eighteen months have seen plenty of action in Indian retail; it is
the right time to update the retail world with the new edition of India
Retail Report. Supported by Confederation of Indian Industry (CII), Shopping
Centres Association of India (SCAI) and Retailers Association of India (RAI),
the India Retail Forum saw the release of this most sought after report in the
presence world retail captains, corporate majors and policy makers of India and
the entire retail fraternity. This year, many more organisations including
National Council for Applied Economic Research (NCAER), Indian Council of
Research in International Economic Relations (ICRIER), and International Food
Policy Research Institute (IFPRI) have contributed well researched chapters.

550 hardbound pages of extensively researched content, the new edition,

presents the India retail story in all its colours. Quantifying consumer spending
and modern retail share in all consumption categories -- from food to fashion;
telecom to automobiles; consumer durables to health & wellness, entertainment
& leisure -- India Retail Report 2009 is an ultimate guide to the business of
retail in India. Chapters pertaining to the investment climate, retail profitability
and legal issues have been especially put together by industry experts -- to
enable potential investors in taking informed decisions.

As per the India Retail Report the Indian retail market stood at
Rs.1,330,000 crore in 2007 with an annual estimated growth of about 10.8
per cent. Of this, the share of organised retail in 2007 was estimated to be
only 5.9 per cent, which was Rs.78,300 crore. Nevertheless, this modern retail
segment grew at the rate of 42.4 per cent in 2007, and is expected to maintain a
faster growth rate over the next three years, especially in view of the fact that
major global players and Indian corporate houses are seen entering the fray in a
big way. Even at the going rate, organised retail is expected to touch
Rs.2,30,000 cr (at constant prices) by 2010, constituting roughly 13 per cent of
the total retail market.

Quotes:

“The India Retail Report 2009 is a well researched and professionally

presented document that brings forth several opportunities that could
benefit the Indian consumers. I look forward to the Indian retail sector
continuing on its developmental growth path and spreading its benefit to
all.”

–Kamal Nath, India’s minister for Commerce & Industry.

"Many countries specially in south east Asia like Malaysia, Indonesia and
Thailand have put in place regulations with a view to balance the conflicts
of interests between modern retail and the traditional retailers and
suppliers to modern retail. We hope to achieve the best interests of the
Indian business through sustained efforts in this direction to make Indian
retail truly competitive with global standards."

– Ajay Shankar, secretary, DIPP, Ministry of Commerce & Industry.

"Retailers must play a wider role in society.The traditional retailer was in

many countries, an active part of the social structure of the neighbourhood.
More than just a source of products or services, he was a companion,
friend, advisor, source of news etc. Most modern formats do not permit
such personalised interaction. However, it is important that we recognise
and play our role in maintaining our neighbourhoods, preserving the
environment, assisting in municipal planning and development, and
playing multiple roles as good citizens. It’s not just good social behavior, its
good business too!."

–Amitabh Taneja, Chairman, IMAGES Group and chief convenor, IRF.

“For retail to be modernized and contribute significantly to the

consumption economy of the country, we have to involve the government
and the society at large as stakeholders in the business. Unlike the IT boom
in the eighties which happened without government intervention, retail
development has to be an integral part of the state and central
governments’ India strategy”.

– B S Nagesh, Chairman, Retailers Association of India and MD, Shoppers Stop

Limited.

“The need of the hour is to sensitize all our stakeholders to the

transformation that modern retail can bring in to our country. We need to
develop a collaborative platform among retailers and other stakeholders
that facilitates further growth of the sector. And as retailers, we need to
focus on how to bring about market innovations that spur consumption
and create an inclusive model that brings more consumers into the fold of
modern retail”.

– Kishore Biyani, Chairman, CII Committee on Retail and Founder & CEO,
Future Group.

HP to upgrade Subhiksha’s IT infrastructure

11 Sep, 2008

HP Financial Services, the asset management

services and leasing subsidiary of US-based IT
conglomerate HP, has announced that it will
partner India’s largest supermarket chain
Subhiksha to develop software to support the
latter’s financing and asset management services.

Elaborating this development, Irv Rothman,

president and chief executive officer, HP
Financial Services, said, “India is a critical market for us and building a strong
relationship with leading companies like Subhiksha is key to our growth
strategy in Asia.”
R Subramanian, managing director, Subhiksha, confirmed the news and said,
“We have been working closely with HP over the last two years and we are
happy with this new development as, from now on, we will be able to invest
more effectively in our business growth.”

In this new plan, along with deploying SAP business enterprise software for
Subhiksha, HP will provide desktop PCs and other IT equipment on lease to
Subhiksha and refresh it’s older PCs with new technology.

Subhiksha head honcho is IRF’08 chair

30 Aug, 2008

India Retail Forum (IRF), arguably the country’s

largest congregation of retail minds, has a new
chairman on board. The Forum, for the year 2008,
will see R Subramaniam, the managing director of
Subhiksha, control its reins.

Handing over the charges to Subramaniam, V

Vaidyanathan, executive director of ICICI Bank
and the chairman of IRF 07, said, “My last duty
as Chairman of Indian Retail Forum 2007 is to hand over the reins to a
representative of the industry who will lift the Forum to greater heights. It is my
proud privilege to welcome Mr R Subramanian, as the Chairman of IRF'08. Mr
Subramanian has kindly accepted the mandate of his industry counterparts, and
will chair the 2008 edition of the magnum opus of Indian retail, where the retail
world comes together to understand and explore the world's most lucrative retail
market.”

As per the IRF, the decision was taken in sync with the views and choices of the
entire industry. “After getting the views of over 250 industry captains, one name
stood out. When Mr Subramaniam was nominated by Bijou Kurien, president
and CEO, Reliance Lifestyle Holdings, and seconded jointly by Sanjiv Goenka,
vice chairman, RPG Group and Mr. B S Nagesh, MD, Shopper's Stop, the
opinion of the industry leaders became clear,” informs Vaidyanathan.
Inviting the industry to support him in his new role, Subramaniam stated, “I
hope that I shall have the industry’s support to make IRF '08 relevant for
retailers. Let us all combine efforts to make this the magnum opus of Indian
retail as no one else can better execute it than us.”

New Partners

Meanwhile, industry bodies including the Confederation of Indian Industry

(CII), Retailers Association of India (RAI) and Shopping Centre Association of
India (SCAI) have joined hands with the IRF.

Speaking on this partnership, Kishore Biyani, chairman, CII National

Committee – Retail and the founder and CEO of Future Group, said, “IRF’s
invite to CII to partner with the largest congregation of retail minds -- offering
the forum to discuss the issues with the industry at large – was well timed and
much appreciated. Indeed the meet will provide us a much larger and an ideal
platform for a more meaningful dialogue and partnership with the industry to
subsequently chart out a detailed action plan for CII initiatives in retail.”

“The power and passion of the IMAGES team push all of us to converge at this
great platform to share, learn and evolve. IRF this year has the support of all
major bodies including Confederation of Indian Industry (CII), Retailers
Association of India (RAI) and Shopping Centre Association of India (SCAI)
and indeed IRF has emerged as the perfect platform for trade bodies and
industry captains to meet, discuss and find a common agenda to work for the
growth of the industry,” says Subramaniam.

“IRF is all about sharing, learning and evolving together, and is recognised as a
global standard. Mr. Subramanian is the ideal chairman to make this huge
business, knowledge and networking platform even more relevant for the
participants. I invite the entire retail fraternity to join me in extending all
support to Mr Subramanian in making IRF '08 a huge success,” Vaidyanathan
stated.
Bachat Mera Adhikar - That is what Subhiksha Has For You! Spartan,
Relentless, Frenzied pace
By Zainab Morbiwala

Hopping across to the nearest super market has ceased to be an inhibition even
for an average Indian middle-class as the benefits they offer vis-à-vis a local
kirana store are increasing by each passing day. The reasons if we evaluate are
simple. With retail getting more and more organized in our country, a lot many
players are recognizing the potential household products have.

No wonder, retail guru Kishore Biyani has his

foothold not only in the apparel and lifestyle
sector with Pantaloons, but also occupies a
major mind of recall with regards to the
mother of ‘all purpose stores' in India with Big
Bazaar. Apna Bazaar, Sahahari Bhandar etc
have been in existence since ages. Modern
retail is bringing with it new players who go a
step further in offering customers with
additional discounts coupled with excellent
service and many more product offerings. The majority of players are regional
but here again the magic of retail is gradually driving players to gain a national
footprint. The latest to do this is Subhiksha.

Starting its journey in 1997 with a single store in South Chennai, they gradually
expanded into other areas of Chennai and then the rest of Tamil Nadu. Till late
last year, Subhiksha had nearly 140 odd stores in Tamil Nadu. Talking about the
same, R Subramanium, managing director, Subhiksha Trading Services Ltd.,
says, “From then on, we put together an aggressive expansion plan and when
others were still talking about the benefits of retail, we had opened nearly 450
odd stores across key markets such as Delhi, Bangalore, Hyderabad, Mumbai,
Ahmedabad, Baroda, Vizag and Vijaywada.”

Before entering the genre of super market, the people behind Subhiksha had an
option of creating a niche for themselves in the software sector. Explaining why
retail was chosen over IT, Subramanium says, “The logic was that in 1997, we
thought with most big players in software predating us by at least 10 years or
more, we would be too late to enter the industry – we thought we would be
quite early in retail and get the same head start of 10 years. The ideology behind
starting Subhiksha was based on two things – to show that things could be done
differently from what the rest of the world does and that we need not copy the
western market and secondly to ensure that the benefits of organized retail went
beyond the high end affluent consumer and went to the aam aadmi as well.”
Currently, Subhiksha is expanding its operation in Maharashtra with lightening
speed and the TV commercials and radio campaign are complimenting the
same. Pinakiranjan Mishra, Partner, Risk and Business Solutions, E&Y says,
“Subhiksha has plans to set up close to 200 stores in Maharashtra in 2007, out
of which about 100 would be in Mumbai. If media reports are to be believed,
they have already set up about 75 stores by the first week of January. This is
quite impressive by any standards and if they are able to grow at this pace, they
will have a strong market presence. Apart from low prices, they also offer free
home delivery and if they make this into a successful model, they have a
distinct edge over others.”

Sharing his views on Subhiksha's entry, Atul Takle, Head – Corporate

Communications, Pantaloon Retail (India) Limited, “We do not see Subhiksha's
entry affecting us. They are largely in the food area, whereas Big Bazaar is an
all purpose store with over 200,000 SKU's. A customer walking into Big Bazaar
meets his expectations of good quality at great prices as well as a variety of
products.”

Commenting on this, Mishra adds, “The models of Big Bazaar and Subhiksha
are quite different and so is the value proposition -- apart from the fact that they
both provide “convenience” and “value”. I guess both will exist together in the
immediate future as Indian still do not do bulk purchases, especially of fresh
food items. So, while Subhiksha would probably score high on accessibility and
convenience, Big Bazaar would score as a one stop shop with better deals.”

Apart from home-delivery, Subhiksha has introduced good discounts for their
customers.

“We offer genuinely-sharp discounts and the lowest prices in town, significantly
lower than those offered by Big Bazaar, Apna Bazaar etc. In fact, we offer
discounts as much as 3-4 times those offered by some of these stores. Also, our
discounts are not seasonal and not limited to a few products. We have many
more stores in comparison to others, for instance, we operate in Delhi out of
more than 110 locations and in Mumbai out of 74 locations. This is being
expanded further,” explains Subramanium.

“We prefer going the lease-rental route. The

reasons are simple, we have greater control on
the operations this way and given that we do
not have to incur an additional margin to the
franchisee, we manage to keep our costs low.
This in turn enables us to offer truly low prices
to our customers,” he further adds.
Operating in four verticals – fruits and vegetables, pharmaceuticals, FMCG and
telecom -- the mode of operation at Subhiksha is minus any frills and for
obvious reasons as the aim is to offer good discounts. Elaborating on discount
retailing, Subramanium says, “We feel strongly about bringing true value to
customers through discount retailing. There are lots of retailers who claim to
offer discounts. But the moments you look behind the surface, you will realize
that offering discounts and true value to customers is restricted to promise of
low prices on one particular day or festival days. More over the promise of large
discounts is restricted to at best 10 per cent of the merchandise. Rest of the
things actually sells at very close to MRPs. So the customer is actually misled
into believing that she is getting large discounts whereas she may be actually
getting at best an average discount of 2-3 per cent. In true discount retailing, the
customer must be offered deep discounts and genuinely low prices that enable
them to save money.

Also, the discounts must not be restricted to specific days or specific items.
Subhiksha follows the EDLP (every day low price) approach where we actually
offer the lowest prices every single day of the year on everything that is sold
from our stores.”

Talking about the no-frill, no-glamour mode working for Subhiksha,

Subramanium says, “Customers are extremely smart. They go to the glamorous
options like hypermarts and malls far away from their houses for entertainment
once in a while. For day to day buying of household provisions, groceries,
toiletries, medicines, fruits and vegetables, etc they still prefer to go close to
their houses or order on the phone. With time at so much of a premium, buying
the same soap, the same detergent or refined oil, is an activity that most
individuals want to spend less time on. They would rather spend time on more
pleasurable activities. Who, in any case, is looking for ambience to buy the
same old toothbrush or toothpaste? Therefore, no-frills stores such as ours that
offer the same basics do very well.”

With over a million sq.ft in space across the country, the minimum size for a
Subhiksha store is 1,500-2,000 sq.ft. Scouting for a suitable property is a known
nightmare but for Subhiksha it has been a smooth journey so far. Subramanian
says, “So far, we have not had any serious issues. Our stores are located in
neighborhoods where finding space is not as much a constraint. We base our
search on finding the right size (1,500 – 2,000 sq.ft) properties close to where
our target customer catchments are, those that are available on a long-term
lease.” To further ease the cost, Subhiksha has opted for lease-rental route.

Talking in length about their expansion plans which happen to be noteworthy,

Subramanium shares, “In the first phase of our expansion we have invested
nearly Rs.300 crore and now have over Rs.450 crore. These include over 100
stores in Delhi, 40 stores in Bangalore, 30 stores in Hyderabad, 30 stores in
Ahmedabad, 14 stores each in Vizag and Baroda, 74 stores in Mumbai and
many stores in the rest of Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu etc.
In our second phase of expansion we will be investing an additional Rs.200
crore and expand into Punjab, Haryana, Western Uttar Pradesh, Maharashtra
and West Bengal among other states. We plan to open an additional 500 stores
by the end of 2007, making the Subhiksha chain over a 1,000 store strong.
ICICI venture is the financial partner and the banks are UTI Bank, HSBC
Standard Chartered, HDFC Bank, Kotak and ICICI Bank.”

With campaigns like ‘Bachat mera adhikar', Subhiksha is all set to convert the
local kirana store customer into a Subhiksha customer and this will be the case
for any new entrants as well, as they will all together give stiff competition to
our local grocer. Mishra is of the opinion, “Whether we like it or not, local
kirana will be affected, probably they will become more customer oriented.
Already in Mumbai you see examples of local kiranas doing up their stores and
fixing air conditioners. So several will transform and survive and many will
probably shut shop. Those that are successful will drive their business through
better knowledge of customers and a more personalized service. For example,
they will bundle their home deliveries with products they do not sell at all. So
when you order groceries, you can also order food, or medicines, etc that they
will buy and send to your home. May be several such stores in a locality will
collaborate to cut delivery costs and capture customers. My belief is that they
will also differentiate on quality on specific products with some smart sourcing,
so consumers might go to specific stores, if they want better rice or atta. ”
Sharing his views, Takle adds, “Local kirana stores will continue to be major
players. Formats like Big Bazaar are visited once in a week or fortnight,
whereas the kirana is still the place to go on a daily basis.”

Subhiksha plans 150 consumer durable stores by mid-09

9 Sep, 2008

Refuting the media reports regarding the dilution

of its stake and that of its vendors stopping the
supply of vegetables and FMCG products to
them, R Subramanian, managing director,
Subhiksha Trading services, said that Subhiksha Retail is all set to make an
entry into consumer durables segment soon.

Announcing this plan, Subramanian told reporters, “We are planning to enter
the consumer durables segment and will diversify our business. As per plans,
we will invest around Rs 600 crore for opening 150 stores by mid-2009.”

“The consumer durables stores would be located across 65 cities including

metros and tier I and II cities and will cover a total space of around 20 lakh
square feet,” added Subramanian.

Moreover, according to Subramanian, the company also plans to increase the

number of its supermarket stores to 2,200, up from its current 1,580 mark and
will invest around Rs 400 crore for this project. However, he did not mention
anything about the expected turnover of the chain from this project.

Rs 500 crore IPO from Subhiksha

9 Feb, 2008

In defiance of a market crisis, wherein many

majors are withdrawing their initial public offers,
Chennai-based retailer Subhiksha is determined to
float the Rs 500-crore IPO in the first quarter of
FY 2008-09.

Confirming the news to Indiaretailing, R

Subramanian, founder and CEO, Subhiksha, said, “We have expansions lined
up and shall definitely go public in the first quarter of this financial year.”

Asked if the company will reconsider its plans because of the present market
scene, he said: “By the time we float the IPO, we hope the market will be better.
We are confident that the retail investor will come forward and, to be sure, we
expect good results.”

The company plans to open 2,000 stores by the end of FY09, and will require
around Rs 1,000 crore to invest for the same. While it expects to pull in Rs 500
crore through the IPO, the remaining investment would be met by the company,
say industry sources.

It is being assumed that ICICI Prudential Assessment Management Company

has also evinced interest in investing in Subhiksha’s pre-IPO.

– Ranjan Kaplish

Subhiksha sells 10 pc stakes at Rs 230 cr

5 Sep, 2008

Wipro Technologies’ chairman Azim Premji has

invested around Rs 230 crore through his private
investment firm ‘Zest Investment Pvt Ltd’ to
acquire a 10 per cent stake in one of India’s
largest supermarket, medicine and telecom retail
chain - Subhiksha.

Confirming the news, R Subramanian, managing

director, Subhiksha said, “This is in sync with the
company’s plan of making Subhiksha a USD 5-billion company and the
country’s largest retailer by 2011.”

This 10 per cent stake is part of ICICI Ventures’ 33 per cent stake in the retailer,
which has come down to 23 per cent after the deal.

Subhiksha currently operates around 1, 590 stores across the country and also
plans to enter the consumer durable segment within the next few months.

The next big thing for corporate retailers

For a retailer, it's all about what's good at the moment, to kickstart the retail
game with. So, what is good at the moment? Mobile phones, it seems. Vishnu
Rageev R rings up a few debutants and visionaries in the steaming Indian
mobile market.
 Story begins
Chennai-based discount retail chain
Subhiksha, currently the largest retailer in the
country with 780 stores across nine states,
recently pledged to be the largest national
retail chain for mobile phones. Last week,
pouring more fuel into this mobile retailathon,
Pantaloon Retail (I) Ltd signed a joint venture
agreement with Axiom Telecom of the United
Arab Emirates (UAE) to distribute mobile handsets. According to industry
sources, many corporate retailers will soon emerge to grab a pie from the Indian
mobile market, which is worth over Rs 20,000 crore.

“The mobile market, which is currently worth over Rs 20,000 crore, has been
witnessing a 20 per cent year-on-year growth since 2004. It is expected to take a
major plunge now with the major corporate houses going after the device to
bring it on to an organised retail platform,” an industry expert told
Indiaretailing.

Mobile mania

Chennai-based Subhiksha made the first-of-its kind retail attempt in New Delhi
in July 2006. Today, mobile mania rules this grocery retailer. The chain has
scaled up to 145 exclusive Subhiksha Mobile stores in the capital and other
states such as Punjab and Gujarat, and cities like Mumbai and Chennai. The
company has opened 15 such EBOs in Chennai and plans to raise the number of
stores to 30 by this December, and around 400 across the country by March
2008.

When enquired about the viability of mobile phone retailing, a Subhiksha

spokesperson informed: “This is a new format that our managing director R
Subramaniam has evolved under Subhiksha, and it is growing at an
unprecedented rate. As per our data, our chain sold 65,000 mobile phones in the
month of June. This underlines the viability of this device and we will close our
eyes to bet on mobile retailing.” According to him, the June transaction is the
highest sale through a mobile chain in the country. In six months, Subhiksha
expects to push through a sale of at least two lakh mobiles a month.

Subhiksha stores retail all the major brands of cell phones, spanning a broad
price band and selling for at least 5 per cent cheaper than other stores. “Earlier,
there had been no organised retail chain in the business. It's a low-margin
business, but we noticed synergy with the rest of our business, which is mostly
in branded goods,” informed Subramaniam.
Visionary's vision
Quite often, retail experts are heard saying that nobody foresaw retail as
Kishore Biyani did. After signing the JV with Axiom Telecom, Kishore Biyani
said: “ The current explosion of the telecom retail market that we are seeing, is
breaking new barriers everyday. There is no doubt that mobiles will soon be the
single-largest electronic products retailed in the country. Future Group, with the
knowledge and expertise of Axiom Telecom's systems and process in this area,
will be best positioned to retail and service the Indian telecom market.”

The 50:50 JV, with an equity base of up to $40 million, will distribute mobile
handsets and accessories, and set up service centres in India. The venture is
targeting revenues to the tune of $200 million in the first year of operations, as
it taps the world's fastest-growing mobile services market.

“The joint venture activities will be carried out by a separate company. The new
company will focus on developing backend sourcing infrastructure for
Pantaloon Retail's existing telecom retailing business, to enable it to expand and
scale up exponentially. Additionally, it will also create a nationwide network of
state-of-the-art after-sales service centres for mobile handsets in the country,” a
company spokesperson informed.

However, Biyani does not intend to experiment by launching company-owned

private labels in mobile category due to the price fall. “We cannot do private
labels, but there is an opportunity at the top end for some lifestyle phone
offerings,” Biyani said. The Pantaloon-Axiom JV stable may even offer
accessorised or custom-made cell phones—ones studded with Swarovski
diamonds, for instance.

Pantaloon already has a Rs 500-crore mobile retail business through

ConvergeM, a wholly owned subsidiary of Pantaloon Retail India Ltd. The
company has a three-pronged strategy – M Bazaar (shop-in-shop at Big Bazaar
stores), M Port (independent brand stores), and Gen M (kiosks in malls and
multiplexes catering to impulse buying).

“With this joint venture, Pantaloon is

leveraging its already established presence in
the retail space. This is a strategic business
decision for Future Group and reinforces its
commitment to be a serious player in the
telecom wholesale, retail and after-sales
service market in the country,” avers an industry expert. Pantaloon entered the
mobile-phone retailing business in 2006.

Future Group with its wide presence and Axiom Telecom with its knowledge
and expertise will be best positioned to retail and service the Indian telecom
market. However, the company will have to deal with the short-interest span in
new cell phone models and the competition from established chains like Virgin-
Essar's Mobile Store and Subhiksha Mobile.

Last year, Essar Telecom Retail entered into an agreement with the UK-based
Virgin Group for brand licensing, technical and consultancy services for its
mobile-phone retail chain. It is learnt that the group has earmarked around Rs
1,500 crore for its new multi-branded telecom retail chain initiative over the
next five years. The company plans to set up a chain of 2,500 outlets across 600
cities in the next three years. It recently tied up with Planet M to open The
Mobile Store, a one-stop mobile solution retail chain, at Planet M outlets.

Winners
Nokia has teamed up with Srishti School of Art, Design and Technology in
Bangalore to open its first studio in India . According to sources, the partnership
is the first in a series planned to tap into the potential of countries, which are
seen as design hotspots and best markets for the brand.

According to a Nokia official, “About 66.7 million mobile phones were sold in
the country in 2006, the third largest in the world after the United States and
China in terms of handsets sold. Out of the total, five per cent goes in organised
trade. We are happy to see many organised retailers entering the market
investing millions of dollars.” It is learnt that this is another reason for the
company to set up its design studio, which is mainly focused at studying what
Indian consumers require.

Whatever the stakes for the early entrants and the newcomers, the fight for the
big pie will once again prove that the customer is king.

Coca-Cola Golden Spoon Awards presented at Food Forum India

6 May, 2008
 To acknowledge the vision and the efforts of the
food-and-beverage retailers in India, Coca-Cola
India in association with Images Group presented
‘Coca-Cola Golden Spoon Awards 2008 – Images
awards for excellence in food retailing’, at Food
Forum India (FFI), the two-day event being
hosted at the Renaissance in Mumbai.

The first-of-its-kind ‘Coca-Cola Golden Spoon

Awards 2008’ have in reserve a Golden Spoon Award for the most admired
names in the industry. The awards were presented across the following
categories:

MOST ADMIRED F&B RETAILER OF THE YEAR: QSR INDIAN ORIGIN

HALDIRAM’S
NIRULA’S
YO! CHINA (winner)
KAMATS

MOST ADMIRED F&B RETAILER OF THE YEAR: FOREIGN ORIGIN

DOMINOS
MCDONALD’S (winner)
PIZZA HUT
KFC
SUBWAY

MOST ADMIRED F&B RETAILER OF THE YEAR: CAFES & JUICE BARS
BARISTA
CAFÉ COFFEE DAY (winner)
BASKIN ROBBINS
MOCHA
COSTA COFFEE

MOST ADMIRED F&B RETAILER OF THE YEAR: DINE-IN INDIAN

ORIGIN
COPPER CHIMNEY
SARVANA BHAWAN
MAINLAND CHINA (winner)
MOTI MAHAL
SAGAR RATNA

MOST ADMIRED F&G RETAILER OF THE YEAR: CONVENIENCE/

EXPRESS FORMATS
SUBHIKSHA
SPENCER’S DAILY
RELIANCE FRESH (winner)
MORE
IN & OUT
HP SPEED MART

MOST ADMIRED F&G RETAILER OF THE YEAR: SUPERMARKETS

FOOD BAZAAR (winner)
SPENCER’S SUPER
RELIANCE SUPER
MORE

MOST ADMIRED F&G RETAILER OF THE YEAR: HYPERMARKETS

HYPERCITY
VISHAL MEGAMART
BIG BAZAAR (winner)
SPENCER’S HYPER
RELIANCE MART
MORE MEGA STORE
SPAR

MOST ADMIRED F&G RETAILER OF THE YEAR: PRIVATE LABEL

SPENCER’S
MORE (winner)
FOOD BAZAAR
SUBHIKSHA
RELIANCE
MOST ADMIRED RETAILER OF THE YEAR: DYNAMIC GROWTH IN
NETWORK EXPANSION ACROSS FOOD, BEVERAGES & GROCERY
RELIANCE RETAIL
SUBHIKSHA
FUTURE GROUP (winner)
ADITYA BIRLA RETAIL
SPENCER’S RETAIL

MOST ADMIRED F&G RETAILER OF THE YEAR: REGIONAL PLAYER

SPINACH (winner)
BIG APPLE
HERITAGE FOODS @
NILGIRI’S
6TEN
FOODWORLD

MOST ADMIRED F&G RETAILER OF THE YEAR: CONSUMERS’

CHOICE

SPENCER’S
VISHAL MEGAMART
BIG BAZAAR (winner)
SUBHIKSHA
RELIANCE FRESH

MOST ADMIRED FOOD PROFESSIONAL OF THE YEAR: FOOD &

GROCERY
ANDREW LEVERMORE
SADHASHIV NAIK
RAGHU PILLAI
R SUBRAMANIAN
SUMANTRA BANERJEE
GUNENDER KAPUR (winner)

MOST ADMIRED FOOD PROFESSIONAL OF THE YEAR: F&B

SERVICES
PARTHA DATTAGUPTA
VIKRAM BAKSHI (winner)
SANJIV KAPOOR
SUNIL KAPOOR
ANJAN CHATTERJEE
ASHISH KAPUR
NIREN CHAUDHARY

MOST ADMIRED F&G RETAIL VISIONARY OF THE YEAR

KISHORE BIYANI

MOST ADMIRED F&G RETAILER OF THE YEAR: LANDMARK

CONCEPT CREATION & EXECUTION
HYPERCITY

The awards are a part of Food Forum India, arguably the country’s largest
congregation of global and Indian food retailers, manufacturers, organisations
and minds in the food-and-beverage businesses. Food Forum India as a concept
was launched by Subodh Kant Sahai, minister of food processing industries,
government of India.

Flagging off the awards ceremony, Sahai said, “We are learning from the
private retail players and trying to bring about an investment-friendly policy for
you. I congratulate all the participants and the organisers for taking the interest
and initiative in organising the Food Forum on such a huge scale. I also request
the food-and-grocery retailers to work on something so that the farmers can be a
part of the development of the sector. Growing demand from the retailers will
lead the farmers to perform better. The retail sector players are the new leaders
of the farming community.”

The Coca-Cola Golden Spoon Awards 2008 were decided on the basis of a
comprehensive analysis of:
• Voting from consumers through a pan-India survey in six leading metros and
tier I cities
• Voting from leading industry experts in the field of food-and-beverage and
food-and-grocery retailing
• Self-nominations by various players which included information on key
variables such as retail presence in terms of number of outlets/geographic
coverage, operational retail space, turnover, growth in the last one year, new
formats introduced, new marketing initiatives, and communication
• Final jury voting comprising global consulting firms and leading industry
observers and analysts

Experience vs Convenience, as the retail mêlée goes

By Ranjan Kaplish and Satrajit Sen

Are you still to visit the new shop in the neighbourhood? Well, if yes, you
missed out on those neat shelves, creative displays, aisle spaces, bar-coded
products, hoards of brands, the greetings extended by the staff, their billing
technology… in all, you missed out on an ultimate experience.

What! You went to buy eggs in that new shop? You burnt extra fuel, wasted
time waiting for them to scan and bill, and paid extra for packed, branded eggs.
Held yourself from impulse buying? Is itconvenient?

This is India(ns) talking. Where, once upon a

time, anything to everything could, would, and
had to be bought from the nearest kirana shop
(mom-and-pop store) – the same shop
wherefrom our grandfathers went to buy from
perhaps the present owner’s grandfather. That
was a decade or two ago.
This is 2008, and we are talking about a India where almost everyday, at some
nook or corner, a unique shop opens to sell this or that… ‘retail revolution,’ as
they call it… Although not important enough like the revolutions described in
the history texts, this definitely has made a difference; the good or the bad of it
remains subjective. .

The business of buying, selling and buying, with its tremendous growth
potential, has attracted not only the national corporate giants, but also the
multinational behemoths. From Ambanis and Biyanis to Tatas and Godrejs, to
Mittals and Jindals… enterprising Indian industrialists are busy opening jazzy
shops, and are heard chanting the charming retail mantra, ‘my customer is my
king,’ which most of us must have seen written somewhere at a grocery shop
near home.

Indiaretailing assessed: Miles to go before anybody slips!

Crying, but hopeful… Blank, but with ideas… Troubled, but confident…
Discouraged, but preparing… Whatever is being heard or witnessed about
the state of the small retailers in the country, the opposite of that is equally
true.

Since November 2007, team Indiaretailing has been visiting, talking to, and
analysing the so-called ‘probable victims’ of corporate India’s entry into the
business of retail. The reconnaissance was focused on a random selection of
localities in the south of Delhi.

Scattered grocers, chemists or pharmacists, vegetable vendors, merchants of

apparel, furniture, electronics, or hardware… almost all sorts of independent
retailers… everyone was quizzed to share their views on expected/happening
effects on their business and their counter-insurgency plans.

Surprise!
The ones who we had assumed are bound to
be pushed into a corner by the recent upsurge,
are oiling their guns and have started assessing
their ammunition. “We have our own strengths
and advantages that the Wal-Marts or the
Carrefours of the world don’t, and that is what
we will cash in on,” said a small grocer,
operating adjacent to the newly opened Subhiksha, in one of Delhi’s happening
marketplaces. “As of now, the corporate giants have not affected my business,
though the future may be another story. We understand the difference that we
can make, and also know what we must learn from the big entrants,” he added.

He is not the only one; there are many of his kind and with similar voices.
“Fortis Healthworld has limited stock. Many customers come to my shop
looking for products that he couldn’t get there. I have gained new customers.
Moreover, the person manning their counter is not an educated pharmacist,
whereas I am. I know the alternatives for the prescribed medicines. There are
unlimited advantages that we have, and we don’t have to pay heavy rent like
them for our shop,” said Rajinder Arora, owner of Ashirwad Chemists.
Ashirwad Chemists and Fortis Healthworld, ironically, share the same wall that
partitions their stores in GK-II market in south Delhi. As luck would have it,
Lifeline, the pharmacy chain, recently closed shop in the same area.

Vinod Dubey, the proprietor of Sanjay Stores, a kirana store very near to the
Subhiksha outlet in East of Kailash, south Delhi, says, “Our sales are the same.
We have our own loyal customers who won’t change their preferences. We
understand their needs. So, we don’t need to worry about anything.”

Furniture retailer Jagdish Kalra, selling besides a Featherlite showroom in CR

Park, south Delhi, says, “Featherlite’s stock is limited and their store is
comparatively small, whereas we sell all the necessary items. There is no
question of losing customers. Moreover, we have been here for two decades
now, and have closely monitored the developments and know the markets’
requirements.”

A vegetable vendor selling in GK-II since the

last 30 years has his own reasons to smile
about. “Although initially people did buy
vegetables from these big shops, they had to
come back, and I was confident that they
would.” This vendor commutes around 35
kilometres everyday, to be present in the
wholesalers’ mandi at 4 am in the morning, so
that he can get the freshest lot of vegetables and fruits. “Do you think the agents
hired by these biggies can match my efforts and products? I even sell these
exotic vegetables, be it red or yellow capsicums, dried mushrooms, or broccoli;
I know what is in demand and where to buy the best product from.” A tough
one to compete with, isn’t he?

Flip side
It’s not just one, two, or three, but hundreds
(sample good enough to represent thousands),
who are echoing similar opinions. Yet, there are several others who look at the
situation with a divergent worldview.

While one set is confident and preparing, there is another that is insecure, and
not able to visualise many opportunities in the near future. Kishan Garg, the
proprietor of Garg Stores, a small grocery shop (adjacent to our confident
subziwala), has seen a fall of over 20 per cent in his business after Subhiksha
and Sabka Bazaar opened in the vicinity.

“There are obviously a limited number of customers for any market, and we
have lost 15 to 20 per cent of our regular customers due to the new openings.
This is a big loss for us.” The statement was echoed by the proprietor of
Vardhaman Stores, another kirana store in the same area.

Surinder Lal, a vegetable vendor near a Safal outlet in Sriniwaspuri, complains,

“People prefer to go to them as their looks and presentation are good. We sell it
in the open, and that is what perhaps makes the difference. After all, we also
have the same varieties as they have.”

“They (the organised chains) have money to spend on mounting their looks. We
can’t even think of this, as we literally struggle to make the ends meet,” says
Ahuja, the owner of Parkash Stores in Nizamuddin. Sarwan Narang, the owner
of Narang Stores, a small grocery shop at Sant Nagar, also voiced the same
sentiment.

However, none of these affected ones had a good-enough reason to answer

some queries they must necessarily direct at themselves. For example, why is
that those who come to your shop, actually come? Why not all of our customers
go to the new superstore? And, what makes me different from them even while
selling the same products?

Counter-insurgency
As a prominent telecom operator’s tagline goes, “An idea can change your
life”…

“The new improved looks of our store have helped us gain more customers. We
have also introduced some additional features such as baskets for the shoppers.
Our motive is to facilitate our customers as much as is possible and, thus, grow
our relations with them,” says S Ahuja of Ahuja Daily Corner, a small food-
and-grocery shop at Sriniwaspuri.

“We have widened our window space so that we can showcase each variety of
our products,” said Rakesh Luthra, the proprietor of Lokesh ki Dukaan, also at
Sriniwaspuri.
Super Priority Corner at Khan Market has appointed a gatekeeper who, as is the
custom at other biggies, greets and opens the store’s doors for everyone.

Kishan Lall and Sons, a grocery and FMCG store at East of Kailash, is planning
to open a chain of stores in the market in the Kailash Hills residential area. This
endeavour, according to the owner, is to facilitate their customers residing in
that particular area. “We have a number of customers coming in from that area.
With the opening of the new store, they will get their necessities more
conveniently and won’t have to come down to East of Kailash,” reasons Prasan,
the proprietor.

“Apart from grocery, we will soon bring in vegetables and fruits for our
customers,” said MK Khurana, the owner of Fancy Stores in East of Kailash.

“The government has no plans for supporting us and, hence, we have to utilise
whatever resources we have to improve our outlook and reach,” says Gyanesh,
the owner of a small food and grocery store in Lajpat Nagar.

So many of them, doing so many things with so many ideas, all to retain their
present faithfuls and attract more… they are all of them going to play out their
roles in determining the future of retailing in India.

Kings’ speak: Comfort, value, experience, convenience

According to Technopak's Consumer Trends '06-07, 93 per cent of households
across India prefer the local kirana store for staple food and vegetables.
Technopak's Consumer Trends '06-07 further reads that 66 per cent of the
customers want to travel a distance of less than 200 metres to 1 kilometre for
their shopping needs.

“The added displays at our local kirana store help us to remember the things we
need to buy. Mostly, I don’t have to come down with a prepared list now,” says
Shalini Ahuja, a doctor.

“The media in our country is always on the run to create hypes. I don’t think the
new big shops can offer what our own kiranawala provides,” said Sohini
Mishra, a housewife. “I am quite satisfied with my shop and do not really look
forward to change it. We have been buying from this store for years now. I can’t
just break the relationship,” she added with a somewhat sentimental undertone.

“I always get discounts and credits at a mom-and-pop store. Any day, even if I
am out of cash, they give me the things I need. This is not possible in a mall or
at a branded retail outlet,” says Zaheer Ali, a call centre employee.
“Who wants to spend money on travelling when you can get the same thing
across the street,” exclaims Lalita Nikumbh, a housewife who stays in Lajpat
Nagar.

Manish Luthra, an engineer, says, “The home delivery system of a local

kiranawala helps me to place the order on my way to office, and they deliver it
to my home. It’s so easy.

”Dinesh Singh, a graphic designer residing in Lajpat Nagar, is grateful that one
doesn’t even need to visit the store to buy necessities. “I just call up the local
kirana store and order the product. They come and deliver it at my home.

” The ones doing the talking here are apparently not switching loyalties all too
soon.

Experts speak
According to India Retail Report 2007,
organised retail presently comprises 4.7 per
cent of the overall retail market, and was
expected to grow by 34.8 per cent by 2006-07.

Even as more and more players enter the

‘organised’ business, it is perhaps a good time
to pose this question: Can mom-and-pop stores or other old, independent
retailers, should they organise themselves, be counted as part of the expected
organised retail figure? The subject sounds strange, being unheard or less
talked-about.

Will researchers or those analysing the organised retail scene validate the ones
who will organise themselves in the coming years? If an ancient marketplace
starts providing services and experiences better than a branded multi-brand
outlet, will its participants be considered among the organised retailers?

While these queries will be answered in due course, some experts from various
sects of retail, share ideas that can strengthen the model of small independent
retailers.

Arvind Singhal, chairman, Technopak Advisors

My advice to the independent retailers (I

would not call them unorganised or traditional
anymore, since many of them are modernising
and trying to reinvent themselves) is:
1. Be confident about their relevance (specialisation) and strengths (proximity
to the customers, knowledge of customers) – in India’s context, independent
retailers are going to stay for many decades to come, and will play a very
important role in the overall retail ecosystem

2. Renovate their outlets to make them look fresher, cleaner, brighter, and, in
general, more contemporary and less cluttered from inside, and appealing from
outside (this can be done on low budget, too)

3. Wherever possible, invest in making customer-friendly shelving and displays

so that customers can walk around, touch and feel the product, and wherever
desired, can self-serve

4. Invest in basic electronic point-of-sale system, which can generate

elementary retail business performance reports for them (to facilitate category
management, brand/SKU management, etc.)

5. Further, strengthen customer contact/relationship by trying to learn and

remember customer names and preferences (a computer-based system will help
a lot), and stay in ‘communication’ with them, whether they are in the store or
at their homes

Jayant Kochar, managing director, Go Fish Retail Solutions

1) Choose your playing field: You cannot compete against large-scale retailers
on their terms, or against their strengths. At the same time, they can't compete
with you on yours. Understand what it is that your customers want from you.
This is not easy, because very often, the reasons they give for shopping at a
particular store may be different from the actual reasons. But once you figure
out what they really want, you will find it relatively easy to give it to them.

So, forget about asking for level-playing fields – find the one that suits you.
Choosing the right playing field usually involves competing in an area where
you have a unique competitive advantage – and it must be one that is relevant to
your customers. Contrary to popular belief, in the case of small local retailers, it
is not necessarily price.

2) Focus on the top-line: Most small retailers tend to focus too much on the
bottom-line, and are obsessed with controlling costs. When I say they should
focus on the top-line, it is not to say that it is not important to improve
efficiencies and control costs. However, the fact is that their costs are probably
going to remain within acceptable limits just by virtue of their close personal
involvement and control. What they need to think about is out-of-the-box ways
to increase sales, by grabbing every viable opportunity to satisfy the latent
needs and wants of their customers.

One of our clients is a small pharmacy chain. Their strategy was to improve
viability by cutting costs. We found that their costs were 7 per cent below other
pharmacy chains – but their sales per square foot were 23 per cent lower! With
some selective loosening of the purse strings, their sales are already up to
competitive levels.

3) Surprise them: The aim is obviously to delight your customers so that they
want to come back again and again. We have found that when retailers think of
how to delight their customers, they usually end up going in for expensive
promotions and gimmicks, which may be counter-productive; or they go in for
the same things that all the stores around them are doing. Think, instead, of
what you can do that will pleasantly surprise them – this is the best way to
create real delight that will lead to more frequent visits and higher sales.

Jayant Kochar is managing director of Go Fish - India's leading retail

consultancy, and he can be reached at jayant@gofishindia.com

Dharmendra Kumar, director, FDI Watch in Retail.

1. Form cooperatives: The small and

independent retailers can easily outnumber the
countable companies in the business. They
should club together and form cooperatives;
together they can become one company,
through which they can form a model that can
compete.

2. Stay united: Scattered we fall; so we must stay united and plan together to
fight competition.

IRIS idea: Challenge the fear

Images Retail Intelligence Service (IRIS) conducted an exhaustive research to
understand the impact of modern retailing on traditional retailers and
consumers. A primary conclusion of the research was that ‘challenging the fear’
is the need of the hour. The key highlights of the research include:

1. There is clearly a mixed feeling amongst traditional outlets in this new

environment of development of modern outlets. Interestingly, the apprehension
levels are high in Kolkata and very low in Bengaluru, with Mumbai and NCR
somewhere in-between.

2. Also, the apprehensions are more amongst the smaller outlets and in outlets
in residential areas; signifying that the larger traditional outlets in commercial
areas have adapted a lot more to the advent of modern retail.

The possible directions the study leaves one with are:

1.Like our ‘father of the nation’ Mahatma Gandhi said, “customer is the most
important…” If we are to keep the interests of customers paramount, then the
task is to help the ‘small’ traditional retailers on various retail mix aspects such
as supply chain, store design, marketing and merchandise assortments.

2. There is possibly a need for modern retailers to use and look at ‘promotions’
much more strategically, which would go a long way in easing whatever
apprehensions exist

3. The growth in consumption is encouraging for both modern and traditional

retailers, and, thus, we need to be poised with better-planned merchandise
assortments.

Budget 2008: Retailers left asking

1 Mar, 2008

“Our demands have not been addressed, as they

should have been,” chorused the retail fraternity
of India while sharing their take on Budget 2008
with Indiaretailing.

Future Group:
Kishore Biyani, CEO, Future Group, says that if
farmers and income tax payers are considered to
be the two major interest groups in the country, this budget couldn’t have been
any better. The government has waived off more than Rs 60,000 crore in rural
loans and, in addition, announced enhanced spending for the rural economy. In
addition, there is a decrease in CENVAT, central sales tax and excise duty on
certain products. Biyani said, "As a retailer, we can hope to capture some part of
the additional consumption that will generate from these measures.
"Our country is going through an unprecedented phase of growth and this was
the time to make long-term decisions on how to sustain this rate of growth. But
surprisingly enough, this budget does little about envisioning long-term growth
plan for the economy and for various industries. While immediate benefits are
clearly visible in the budget, one finds it hard to find long-term measures for
new-economy businesses that are gaining momentum."

Shoppers’ Stop:
Govind Shrikhande, chief executive, Shoppers’ Stop, said, “Issues like service
tax on rentals and industry status have not been touched, but the finance
minister has done well to address issues including CST and excise duty on
certain items which, in the long run, will benefit the retailers. In all, it is a
neutral budget."

Aditya Birla Group:

Vikram Rao, business head, textiles and apparel, Aditya Birla Group, said,
"Although the budget has received a positive response in a few sectors, on the
textile export front, the budget is a little disappointing. The budget will dampen
the exporters’ bottom-line as the finance minister did not announce anything to
check the adverse impact of rupee appreciation.”

“On the domestic front, the reduction in service tax on rentals in retail would
have been a welcome move," he added.

M&B Footwear:
Inder Dev Singh Musafir, director, M&B Footwear, also expressed his
discomfort on the Budget, saying, “The finance minister has once again lost an
opportunity to boost an industry that provides employment to the weaker
section of the Indian population – the ‘aam aadmi’.

“By rationalising taxation on footwear, he could have helped in converting 80

per cent of the unorganised footwear industry into a tax-paying community,
and, in turn, given a boost to tax collection."

Subhiksha:
R Subramanian, managing director, Subhiksha Trading Services, termed the
Budget as the government’s election propaganda:
• Rs 60,000 crore debt waiver for farmers and tax relief for almost all
individuals – no increase in duties and taxes – cheaper small cars and scooters
and cornflakes – no increase in petrol prices – what more could one expect as
handouts

• No shocks from new fringe benefit tax (FBT) charges

• Disappointment would be that there is no acceleration in timetable on CST

reduction. Neither is there any speeding up of the goods and services tax regime

• The concerns are that there is no stimulus to investment, and besides the
increase in capital gains tax, a one per cent add-on duty has been imposed on
mobile phones

• Concerns about keeping India’s growth intact in a globally tough economy

have not been addressed

• Overall, a budget that does not rock the boat – we expect it to be positive for
retail, given more money in consumers' hands and, therefore, more spending

Vishal Retail:
Surinder Aggarwal, managing director, Vishal Retail, said, “We are somewhat
happy, but the minister could have thought about minimising the service tax on
rentals. This perhaps is the only major issue he has lost. Otherwise, we should
congratulate him for coming up with a consumer-friendly budget.”

Big Apple:
“It is quite a good budget, but the finance minister should have addressed the
service tax issue. Otherwise, it is more or less satisfactory to note that he has
touched the issues of FMCG and other consumer goods,” said, Munish
Hemrajani, managing director, Big Apple.

Ebony:
Lalit Kumar, chief executive officer, Ebony, said, “It has been a good budget
from the consumer’s point of view, but as an industry person, I am not happy.
Our major demands have not been addressed."
Nirula’s:
Samir Kuckreja, chief executive officer and managing director, Nirula’s ,
pointed out:

• We are happy with the reduction in CENVAT from 16 per cent to 14 per cent,
though we were hoping this would be removed for confectionary items
• Reduction in excise on packaging will lead to a direct benefit
• Focus on the cold chain and cheaper refrigeration components will help
develop this critical infrastructure for our industry
• The reduction in CST is welcome, but we were hoping that it would be
removed
• The tax holiday to hotels in heritage sites will help develop tourism in these
areas
• Overall, it is a balanced and growth-oriented budget with benefits for different
sections of society

GHCL:
Nikhil Sen, head, strategy and international business, GHCL, said: "We are
happy as the prevailing difficulties due to rupee appreciation have been
addressed. The finance minister seems to have understood the importance of
creating price stability. We are also happy to know that the government is
concerned and will help in infrastructure development in the country.

"However, the ministry has missed out on several major issues that have
annoyed the retail fraternity," he added

– Ranjan Kaplish and Satrajit Sen

Future eyes Rs 12,000 cr from private labels

16 Sep, 2008

Kishore Biyani-led Future Group is eyeing around

Rs 12,000 crore from the private labels by 2012.
Speaking to media on the occasion of India Retail Forum 2008 in Mumbai,
Biyani expressed his hopes saying that brands are created by the image what we
call as ‘brand image’ and if the demand and the need of the consumers are taken
care of, then any brand can become the favourite brand to the consumers. That
is why Future Group is currently engaged into researching and innovating
private brands for its customers.

He also said, Future Group is eyeing for a 50 per cent stand-alone stores in near
future. According to Biyani, as long as Indian retail market is concerned, one
should look into the expansion in terms of the number of stores to reach more
and more people and not to the formats. So, Future Group would be looking into
opening more and more stores in near future in any format.

According to him, presently the retailers are too much into researching about
the formats of the stores avoiding the needs and demands of the people. It is
also the rural retailing in every format that the group has in its radar starting
from opening grocery stores to providing insurance to the farmers to reach more
and more people. The group is eying for as many as 170 to180 ‘Aadhar’ stores
in the next 12 to14 months as part of its expansion plan. But the group is not at
all eying to the ‘Cash-and-Carry’ formats as of now. Future eyes to giving more
and more to the consumers according to their demand and needs.

He further informed that the Group has done extended market research on
understanding the Indian markets and consumers for the past one year with the
Mckensey Group and now planning to come up in a re-invented way. The group
is also eyeing for a strict restriction in making expenditure, which results into
saving around Rs165 crore in the last year by the group. This saving has also
been included in the group’s future planning.

Kishore Biyani, however, negated the news that Future Group is eyeing to buy
stake in Subhiksha.