market research report : retail market in india 2012

Retail Market IndiaRetail Market – India

January 2012

Executive Summary

Market

Retail market in India was valued at INR a tr in 20‐‐ and is expected to grow to INR b tr in 20‐‐

It accounts for c% of the country's GDP and is the second largest employer with d mn people

Traditional retail formats are fast getting replaced by modern organised retail formats

Low organised retail penetration in India translates into huge growth potential for this market

Drivers & Challenges

g p g g p

Drivers– Low organised retail penetration– Rising income levels and consumerism– Growing retail space and mall boom

Challenges– Insufficiencies in supply chain– Shortage of skilled manpower– Real estate issuesChallenges Growing retail space and mall boom

– Increasing availability of credit– Changing demographics and consumer behaviour

Real estate issues

Trends Emergence of innovative retail formats Online and rural retailing

FDI Scenario

Evolution of Retail FDI Policy Current FDI Scenario in Retail Single Brand Retailing in India

Trends Online and rural retailing Integration of various business strategies

Competition

Single Brand Retailing in IndiaMulti Brand Retailing in India

Major Players

Player 1 Player 2 Player 3

2RETAIL MARKET IN INDIA 2012.PPT

Co pet t oPlayer 4 Player 5 Player 6

•Market Overview•Market Overview

•Drivers & Challenges

•Trends

•FDI Scenario

•Investment Scenario

•Competitionp

•Strategic Recommendations


Retail market in India is poised for strong growth in the coming years owing to favourable government support

Retail Market – Overview Market Size and Growth• Indian retail market has experienced high growth over the last decade with a gradual shift towards modern retailing formats

INR tr

%modern retailing formats• It accounts for k% of the country's GDP and is the second largest employer with l mn people, contributing j% of the total employment

• Due to the government now allowing more FDI

z% y

x

g grelaxations, the retail sector in India is poised for strong growth in the near future

Share of Major Retail Segments (20‐‐)0

2014e2010

Segment 1

v%

i%

h%

g%f%e%

d%Category 4

Category 3

Category 2

Category 1

u%

c%

b% a%

Category 7

Category 6

Category 6

Category 5

Category 4Low organised retail penetration indicates huge growth potential

for this market


Source:

Segment 2Category 8

Drivers & Challenges – Summary

Drivers Challenges

Low organised retail penetration

Rising income levels and consumerism

Insufficiencies in supply chain

Shortage of skilled manpower

Growing retail space and mall boom

Increasing availability of credit

Real estate issues

Changing demographics and consumer behaviour


Trends – Summary

Online Retailing Rural Retailing

Key Trends

Integration of various business strategies

Emergence of innovative retail formats

Trends


Public: Domestic Company – Player (1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Products and Services

Ticker Symbol

Stock ExchangeHead Office

Key People


Category Products/Services

Category 1 Product 1, Product 2, Product 3

N D i tiCategory 2 Product 1, Product 2, Product 3


Name Designation

A

B

C


Source:

D


i i l S h K iFinancial Snapshot Key Ratios

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin

Net Profit/LossTotal IncomeINR mnINR mn

Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets20102009

020112008

Financial Summary

• The company incurred a net profit of INR a mn in FY 20‐‐, as compared to net profit of INR b mn in FY 20‐‐

• The company reported total income of INR c mn in FY 20‐‐, registering an increase of d% over FY 20

Return on Fixed Assets

Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)

Interest costs (% of Sales)registering an increase of d% over FY 20‐‐

• The company earned an operating margin of e% in FY 20‐‐, a decrease of f percentage points over FY 20‐‐

• The company reported debt to equity ratio of g in FY 20‐‐, an increase of h% over FY 20‐‐

Interest costs (% of Sales)

Liquidity RatiosCurrent RatioCash Ratio

Leverage RatiosDebt to Equity Ratio

b i l iKey Financial Performance Indicators

Indicators Value (05/01/2012)Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

Debt to Capital RatioInterest Coverage Ratio

Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover


EPS (INR)

PE Ratio (Absolute)Working Capital TurnoverCapital Employed Turnover

Improved DeclineSource:


Key Business Segments Key Geographic Segments

Segment 4

Segment 3

Segment 2

Segment 1

Segment 6Segment 4

Segment 5

Segment 2

Segment 1 Segment 3

0%

Key Recent Developments

0%2011201020092008 2008

0%201120102009

Description News

Overview

• Player is India’s market leader in the social expression industry with over a% market share in the organized sector and presently has b owned outlets along with c franchised outlets

• It exports its products to Country 1, Country 2, Country 3, Country 4, Country 5, Country 6, Country 7, Country 8 Country 9Country 8, Country 9

Collaborations

• Player has entered into a license agreement in Jan 20‐‐ with company the global market leader in O, to open up exclusive retail outlets across India

• It also has exclusive tie‐ups with many other global majors such as Company 1 of USA, Company 2, Company 3, Company 4 and Company 5 of UK


Source:

Expansion Plans • It plans to open up f stores within 20‐‐ and around h in three to five years in City 1 and City 2

Private: Domestic Company – Player (1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.


Website

Year of IncorporationHead Office

Key People


Brands Products/Services


Category 2 Product 1, Product 2, Product 3N D i ti

g y , ,Name Designation

A

B

C


D

Source:


i i l S h K iFinancial Snapshot Key Ratios

Particulars y‐o‐y change (2011‐10)

2011 2010 2009 2008

Profitability RatiosOperating Margin

Total Income Net Profit/Loss

0

INR mnINR mn

Net MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on Assets

0

Financial Summary

Return on Fixed Assets

Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)


02011201020092008

• The company incurred a net loss of INR a mn in FY 20‐‐, as compared to net loss of INR b mn in FY 20‐‐

• The company reported total income of INR c mn in FY 20‐‐, registering an increase of d% over FY 20‐‐


Liquidity RatiosCurrent RatioCash Ratio

Leverage RatiosDebt to Equity Ratio

b i l i• The company earned an operating margin of e% in FY 20‐‐, an increase of f percentage points over FY 20‐‐

• The company reported debt to equity ratio of g in FY 20‐‐, an increase of h% over FY 20‐‐

Debt to Capital RatioInterest Coverage Ratio

Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset Turnover


Working Capital TurnoverCapital Employed Turnover

Source: Improved Decline


Key Recent Developments

Description News

• Player is the retail arm of ABC operating through two formats supermarket and hypermarket under theOverview

• Player is the retail arm of ABC, operating through two formats, supermarket and hypermarket, under the

brand names, x and y

Expansion Plans

• It plans to open d supermarkets and e hypermarkets by 20‐‐ with an investment of INR f bn

• It is focusing on expansion of retail store network in semi‐urban and rural areas on the back of its

llexperience in smaller towns

Retail Network

• At present, Player has over g supermarkets across the country

• The company also operates M hypermarkets under the brand h in City 1, City 2, City 3, City 4, City 5 City 6

and City 7

Awards and Recognitions • Player was conferred two awards for 'Private Labels' by T in the categories of ‘N’ and ‘U’


Source:

Thank you for the attentionThe Retail Market ‐ India report is part of Research on India’s Consumer Goods Industry Series. For more detailed information or customized research requirements please contact:

Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quick

Gaurav KumarPhone: +91 33 4064 6214E‐Mail: [email protected]

Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on

About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.

Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on India


Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.