Mahesh kumaer+91-8419884172

maheshbhu39@gmail.com

Our policies were based on (Protection Based):◦ Acute shortage of food items◦ Poverty and Poor Purchasing power◦ Low level of Foreign exchange

Current Scenario (Market Driven):◦ Surplus Food Items◦ High Purchasing Power◦ Changing preferences of Consumers◦ Sufficient FOREX

In 1997, FDI in wholesale “Cash & Carry” allowed upto 100%under automatic route.

In 2006, 51% FDI in single brand retail allowed and Louis, Vuitton, JimmiChoo, Christian dior and other brands entered.

In Nov 2011, cabinet allowed 51% FDI in multi brand and 100% in single brand.

A large disagreement and protest observed. On Dec 07,2011, All party meeting was convened

and the matter was put on hold.

• Global Retail players: Walmart, Tesco, Carefour, Metro, Ikea etc

• Global retail giant brings must trust their ability to bring about a positive transformation in the lives of Indian consumers, entrepreneurs and employs who hope to become their direct and indirect associates.

• India’s economic future and its potential and capability to offer a win preposition for the retailers and others including the consumers , the producers, the employees and government.

International retailers must also encourage their global suppliers to also repose a similar level of confidence in India by creating new manufacturing capacities within India so that india’s manufacturing sector gets a further fillip, create new jobs beyond the retail shop floors and make the producer- consumer supply chain more efficient.

They must invests in marketing infrastructure.

• Govt should remove bottlenecks and irritants.• Antediluvian policies that serve the interest of no one

while creating value loss at various stages.• Farm products must be given a border free/octori

free pan –India market in order to create efficient supply chain.

• Centre & State must simplify and modernize shop and establishment ACT.

• For inclusive growth ,modern retail also calls for structural reforms in Agril Sector which includes APMC Reforms by states, Defragmentation of highly fragmented holding. Formation of farmer’s cooperatives &Producers Company to allow economies of scale.

• Incentives for post farm gate processing of Agril. Products.

• Keeping in view that Agri busuness enterprises look for direct tie-up with farmers ,the Companies Act was amended in 2004.

• Farmers are joining Indian industries and setting up producers companies by pooling together the land and produce of their shareholders.This provide economies of scale & collective negotiation in the market.

• These companies are signing lucrative deals with large retail chains, food companies and exporters keen to establish reliable supply chains.

• More than 200 producers companies have been formed with an average of 1000 members

•

Features Producer cooperative Producer Company

Registration Cooperative Society Act Companies Act

Membership Open only to individual and cooperatives

Only those who participate in the activity

Relationship with others(corporate,NGO)

Transaction based Producer & corporate entity can together float a producer company

Shares Not tradable Not tradable but transferable

Voting Rights 1 person one vote but Govt & Registrar holds veto power

I person one vote Those not having transaction with company cannot vote

Reserves Created if there is profits

Mandatory to create every year

Role of registering authority

Significant Minimal

Administrative control

Overbearing None

Borrowing Power Restricted More freedom & alternative

Dispute settlement

Through cooperative mechanisms

By arbitration

Stages in making producer Company: Stage-1: aggregator, Input provider, Knowledge

provider stage present activity mostly. Stage-2:Intermediating with corporate entities

stage , Some activity seen Stage-3:Own processing facility, Brands &

market Channel, future Action

Large no of Buyers (individual consumers, retailers, processors,traders & Sellers(producers)

Free entry & exit (Domestically or Globally)We must remember that we are founder

signatory of WTO and our corporate houses have made investments in other countries also.

Based on current trend of growth and inflation Inda’s nominal GDP will be about $ 8000 billion in 2026.

The size of india’s retail market would have also moved up from about $500 billion in 2011 to $2500 billion in 2026.

Traditional retail account $ 475 billion of this market. Even if modern retail attracts as $150 billion over

the next 15 years($10billion/yr), the size of modern retail is not likely to cross $300 billion, implying the traditional retail will account about $2200 billion by 2026 i.e more than 4 timesof current size.

Our urban or semi urban planner has no plan to provide space for such a huge retail sector .

City Employment (in Lakh)

Lucknow 3.6

Jaipur 3.7

Surat 5.1

Pune 5.3

Ahemedabad 7.0

Chennai 8.0

Hyderabad 8.0

Bangalore 8.6

Kolkata 17.3

Greater Mumbai 19.1

Delhi 23.3

June 2006

June 2011 % growth

No of Big Bazar Outlets 56 149

No of Food Bazar 20 149

No of Centrals 4 10

No of KBs’ fair Price Stores

0 130

No of e zones 0 39

Provide credit Up & Down the supply chain, from the farmer to the neighborhood vegetable seller.

Stand ready to buy all produce from farmers irrespective of quality, which agribusiness companies are unwilling to do

Deep understanding of market, products & production.

Squeezing both ends of supply chain, paying farmers low price & forcing consumers to pay higher prices

Underinvesting market infrastructure like cold chain etc resulting post harvest losses upto %

Acting as a cartel and exploiting both (producer & consumers)

It will invite many east India companies The no of independent retailers and street

hawkers is more than 15 million, It will ruin local Kirana industries.

Corporate Sales(Crs) Loss

2009-10

2010-11 2009-10 2010-11

Reliance Retail

2599 3132(21) 177 247(40)

AdityaBirla Retail

1411 1637(16) 541 423(-22)

Trent Hypermarket

290 520(79) 29 51(76)

Bharati Retail 133 470(253) 170 266(56)

Total 4433 5759(30) 917 987(8)