reliance retail

A FRESH APPROACH TOWARDS RETAILING IN

INDIA

INDIAN RETAIL SCENARIOIndia ranks 1st for top international

destination for retail investment.U.S $ 350 billion retail market. 96% market share is held by 12 million

family run shops.4th largest economy in purchasing parity

terms after US , china & Japan.Retail sector will grow 35% in 2008.

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ORGANISE SECTOR FACTSVirgin territory for organized retail

investment. 2-6% of total retail.Expected to increase to 15-18% by 2011.Food retailing is expected to grow to US$ 1.6

billion.Apparel to increase by 9.5% by 2010.

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RETAIL SECTORStreet cards .Corner shops.Open air market “ MANDIS”Kiryana Stores

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ORGANISE SECTORHyper marketSuper marketSpecialty chain stores.Factory outletsMallsMultiplexes

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CONTD……HYPER MARKETBIG BAZAR(PANTALOON RETAIL INDIA

LTD)GIANT(RPG GROUP)

DEPARTMANTAL STORESWEST SIDE(TATA)SHOPPERS STOP(K.RAHEJA GROUP)

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ABOUT RILIndia largest company Market value US$ 35 billionTurn over of US$ 27 billion in 2007Started by Dhirubhai Ambani with US$ 1000Grown rapidly & went public to raise funds

for polyester plantWorld’s Largest producer of polyesterRIL has grown exponentially to diversify

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RIL RETAIL STRATEGYInvesting US$ 5 billion in pan-india retail

including both small & super stores.

Generating 1 million jobs

Reaching annual sales of US$ 25 billion by 2011

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RIL FRESH2200-4000 sq feetTrial partnership with struggling govt owned

cooperative stores “SAHAKARI BHANDAR” in Mumbai.

Consisted of revamping of stores & providing supply chain management services.

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OBJECTIVES ACHIEVEDFirst hand knowledge of retail business

Small retailers are a powerful lobby

Made RIL to take on international retail giants.

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HYPER MARKETAmbani plans to built hyper markets, titled

Reliance Mart spread over 150000 sq feet's

Selling everything from groceries to clothes & consumer electronics

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RELIANCE FRESHTargeting 784 small Indian towns with

population greater than 500006000 outlets in 784 cities & towns by 2010-

11Opening & operating 100 millions sq feetBy doing so it will be ahead of “TESCO”

which has 58 million sq feet

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SUPPLY CHAIN“ from farm to fork”Agro- Retail strategyTwo modern India's most backward sector1600 procurement & distribution hubsNamed as “ Reliance Mandis” Supplied by rural farming centers with fresh

produce & dairy products

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WHY SUPPLY CHAIN MANAGEMENT?Lack of infrastructure, which leads to decay

of half of the countries fresh produce before they reach stores.

Cold storage , food processing facilities & also provides farmers with fertilizers , fuel & credit to suppliers(Farmers).

Eliminate the middlemen , by this Reliance hopes to pass savings to farmers .

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CONTD….In Kerala farmers are able to sell their produce

at the mandis without paying any commission and receive immediate payment of produce.

85 logistics centers to move food to retail

outlets & to airports

Stock is replenished 2 times a day , fresh produce comes from their own distribution center .

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REAL ESTATE BANKCompany wants to own most of its underline real

estate .

Motive behind this strategy is to protect its business margins by avoiding payment of high rents

Reliance plans of consolidating about 15 million sq feet of property would mean shunting of competitors such as PANTALOONS & SHOPPERS STOP.

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CONCLUSION

Will the dreams turn into Reality!!!

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THANK YOU