1. Industry of the Month
“Retailing in India”
eBizWire
Vol . I Issue. II, March 2012
Insight
Biz India News 2
Biz Policy Updates 2
Retail Industry in India 3 ‐ 7
Business Idea of the Month 7
StartBizIndia Discussion Platform 8
Upcoming Business Summit 9
Contact us 10
For more info on Business setup visit www.startbizindia.in
P a g e | 1 For Business setup queries email at
neha@indiacp.com or call at 011 40622239

2.
Biz India News Headlines
 India has invited Saudi participation in upcoming investment opportunities in its petroleum India invites Saudi Arabia to
upstream and downstream sector including OPaL’s Petrochemical project at Dahej and invest in oil sector
OMPL’s Petrochemical project at Mangalore
 Singapore-based Sembcorp Industries said its Indian joint venture, Thermal Powertech Sembcorp India plant signs 10
Corp, has signed an agreement with Indonesia's PT Bayan Resources for supply of about
year coal contract
one million tonnes of coal per year for 10 years. The contract, which is for an aggregate
of 10 million tonnes of coal, is expected to commence in 2014, Sembcorp said in a
statement.
 The increase in diplomatic strength between Indian and Australia has facilitated devotion Australia turns focus to South,
of more resources to South India, according to David Holly, Consul General to South
keen on more bilateral trade
India, Australian Consulate General, Chennai, India. The bilateral trade is poised to reach
A$ 40 billion (US$ 42.59 billion) in three years, as per Michael Carter, Consul
Commercial and Trade Commissioner, Australia Trade Commission
 Hero MotoCorp has signed a technology-sharing deal with US motorcycle firm Erik Buell Hero MotoCorp joins hands with
Racing (EBR). "It's a very flexible partnership where they will develop cutting-edge Erik Buell Racing
technology based on our needs and market demands," according to Pawan Munjal,
Managing Director and CEO, Hero MotoCorp
German firm Steinbach sets
 Steinbach & Partner, the Germany-based global executive search and human resource
up Indian arm
(HR) consultancy firm, has entered India and set up a wholly-owned subsidiary,
headquartered in Pune.
 Ethiopia has sought India’s assistance for promoting tourism in the country Visiting Ethiopia Seeks Assistance
Ethiopian Minister of Culture and Tourism Tadelech Dalcho called on Tourism Secretary from India to Promote
R.H. Khwaja and showed keen interest in India’s tourism activities Tourism
 Tata Consultancy Services Ltd (TCS) has announced a joint venture (JV) with Mitsubishi
Corporation to increase penetration in Japan. The JV will be named Nippon TCS Solution TCS in JV with Mitsubishi for
Centre and will offer information technology (IT), business process outsourcing (BPO) Japan Market
and infrastructure services to Japanese corporations
Biz Policy Updates
Legal Headlines
 RBI has revised the procedure for reporting the software exports to Software technology
Parks (STPI) on 15th February 2012. This procedure is applicable to those Software RBI revises procedure for
exporters whose turnover is excess of Rs. 1000 Crores or who submits at least 600 reporting the software exports to
Softex Forms annually. STPI
 GOI has permitted up to 100% FDI in Single Brand Product Retail Trading under FDI in Single Brand Retailing
th
approval Route on 10 January 2012
For more info on Business setup visit www.startbizindia.in
P a g e | 2 For Business setup queries email at
neha@indiacp.com or call at 011 40622239

3.
Key Players in Indian
Retail Industry In India Retail Market
“The secret of successful retailing is to give your customers what they want. And
really, if you think about it from the point of view of the customer, you want
everything: a wide assortment of good quality merchandise; the lowest possible
prices; guaranteed satisfaction with what you buy; friendly, knowledgeable
service; convenient hours; free parking; a pleasant shopping experience."
Sam Walter – Founder
Walmart Corporation
India is one of the fastest growing retail industries in the world over the last couple of
years. It is the fifth largest in the world and third largest in Asia after China and Japan.
The retail industry is divided into organized and unorganized sectors. The former refers to
trading activities carried on by licensed retailers and the latter refers to traditional formats
like kiryana stores. Traditionally the retail market in India was largely unorganized,
however, with changing consumer preferences, organized retail is gradually becoming
popular. The last few years have seen an immense growth in this sector, the key drivers
being changing consumer status and demography. The government policies are
becoming more favorable and emerging technologies are facilitating operations. With
rising disposable incomes, expansion of stores and supporting economic factors, India's
retail sector is expected to grow to about $ 600 billion by 2014, according to a report by
global consultancy and research firm.
TRADITIONAL AND MODERN RETAILING: THE INDIA STORY
Traditional retailing continues to be backbone of the Indian retail Industry, with traditional/
unorganized retailing contributing to over 95% of total revenues. The classic mum & pa
family retailing outlets forms the major part of retail market. More than 12 million retail
outlets exists in India as against China with 2.7 millions. Retail Sector in India is primarily
categorized by the type of products retailed, as opposed to the different retail formats in
operation. The food and beverages accounts for largest share of revenues. The Indian
consumer behavior of preferring proximity to food and grocery retail outlets is highly
evident. Retail Formats In
Apparels, mobile, consumer durables are also equally growing in the retail market in
India. Apparel is one of the fastest growing verticals, with the highest number of domestic India
and foreign brands mushrooming in the market, and increasing consumer willingness to
pay for brand and quality of products.
 Exclusive Branded
Retail Shops
ORGANISED RETAIL IN INDIA
 Multi Branded Retail
Organised retailing, in India, refers to trading activities undertaken by licensed retailers, Shops
that is, those who are registered for sales tax, income tax, etc. These include the publicly-
traded supermarkets, corporate-backed hypermarkets and retail chains, and also the  Convergence Retail
privately owned large retail businesses. These are exciting times for Indian Retail. Outlets
For more info on Business setup visit www.startbizindia.in
P a g e | 3 For Business setup queries email at
neha@indiacp.com or call at 011 40622239

4.
Retail Industry In India
Competitive Scenario in
LICENSES REQUIRED TO START A RETAIL STORE IN INDIA
Indian Retail Sector
 Shops & Establishments Trade Licenses
 Labour License/7 days working permission
 ESIC Sub Code
 Hypermarkets
 Contract Labour Registration
 Prevention of Food & Adulteration Act
 Departmental Stores
 Food handlers certificate
 Grampanchayat N.O.C  Supermarkets
 Police Clearance
 Licence for frozen Non veg food  Specialty Stores
 Milk and Milk Products Order
 Drug License for OTC Products  Cash & Carry Stores
 Civil Supply License
 Food license to store food products from the Medical Officer of
Health of Municipal Corporation
 Permission from state electricity board/ municipal authorities/
Government for use of generators/ D.G. sets
 Food and Drug Licenses i.e. PFA licence
 Licence for sale of Cosmetics under Drugs and Cosmetics Act
 Valet Parking
 Restaurant Grade License
 Any other License/ Permission as may be required
FUTURE OUTLOOK
Before 2011, India had prevented innovation and organized competition in its
consumer retail industry. It has been claimed that the lack of infrastructure and
competitive retail industry is a key cause of India's persistently high inflation.
Furthermore, because of unorganized retail, in a nation where malnutrition remains a
serious problem, food waste is rife. Well over 30% of food staples and perishable
goods produced in India spoils because poor infrastructure and small retail outlets
prevent hygienic storage and movement of the goods from the farmer to the
consumer.
Strategies by Retailers
It has been estimated that Indian retail market is generating sales of about $470
billion a year, of which a miniscule $27 billion comes from organized retail such as  Lowering prices
supermarkets, chain stores with centralized operations and shops in malls. The
opening of retail industry to free market competition, some claim will enable rapid
growth in retail sector of Indian economy. Others believe the growth of Indian retail  Offering Discounts
industry will take time, with organized retail possibly needing a decade to grow to a
25% share. A 25% market share, given the expected growth of Indian retail industry  Value Added services
through 2021, is estimated to be over $250 billion a year: a revenue equal to the
2009 revenue share from Japan for the world's 250 largest retailers.  Leveraging partnerships
The Indian retail sector, particularly organized retail, is still under-developed and in a
nascent stage and therefore it is important that the domestic retail sector is allowed
to grow and consolidate first, before opening this sector to foreign investors.
For more info on Business setup visit www.startbizindia.in
P a g e | 4 For Business setup queries email at
neha@indiacp.com or call at 011 40622239

5.
Retail Industry In India
Policy Support:
Demand Potential: Govt is planning to
India’s growing remove old tax system
population and to simplify the tax
urbanization offers huge calculation and avoid
market for organized double taxation in
retail Indian Retail
Advantage
India in Retail
Gateway to India
While there are restrictions in
FDI in Indian retail, the most
common channels for entry of
foreign retailers are through;
 Strategic License
Increasing
Investments: Agreements i.e.
100% FDI allowed in Partnering with Indian
Single Brand Product
promoter owned
Retail Trading under
approval route companies in the Middle
East (UAE) or South
East Asian countries
(Singapore, Malaysia,
 Indian market has high complexities in terms of a wide geographic spread and
Thailand, Indonesia)
distinct consumer preferences varying by each region necessitating a need for
localization even within the geographic zones  Franchising
 India has highest number of outlets per person (7 per thousand)  Cash & Carry wholesale
 2
Indian retail space per capita at 2 sq ft (0.19 m )/ person is lowest in the world trading
 Indian retail density of 6 percent is highest in the world.1.8 million households
in India have an annual income of over 45 lakh
For more info on Business setup visit www.startbizindia.in
P a g e | 5 For Business setup queries email at
neha@indiacp.com or call at 011 40622239

6.
Retail Industry In India Market Size over the
INDIAN RETAIL REFORMS
Past Years (USD Billion)
Until 2011, Indian central government denied foreign direct investment (FDI) in multi-
brand Indian retail, forbidding foreign groups from any ownership in supermarkets, 450
convenience stores or any retail outlets, to sell multiple products from different
brands directly to Indian consumers. 400
350 CAGR 6.4%
The government announced the following: 300
250
 India will allow foreign groups to own up to 51 per cent in "multi-brand retailers",
200
as supermarkets are known in India, in the most radical pro-liberalisation reform
150
passed by an Indian cabinet in years;
100
 single brand retailers, such as Apple and Ikea, can own 100 percent of their 50
Indian stores, up from the previous cap of 51 percent; 0
1998 2002 2006 2010
 Both multi-brand and single brand stores in India will have to source nearly a
third of their goods from small and medium-sized Indian suppliers; Source: EIU, Euro monitor, Aranca
Research
 all multi-brand and single brand stores in India must confine their operations to
53-odd cities with a population over one million, out of some 7935 towns and
cities in India. It is expected that these stores will now have full access to over
 The Retail sector in India
200 million urban consumers in India;
is emerging as largest
 multi-brand retailers must have a minimum investment of US$100 million with at
sector having Total Market
least half of the amount invested in back end infrastructure, including cold
Size of USD425 Billion in
chains, refrigeration, transportation, packing, sorting and processing to
2010
considerably reduce the post harvest losses and bring remunerative prices to
farmers;  The Indian retail Industry is
 The opening of retail competition will be within India's federal structure of increasing at annual growth
government. In other words, the policy is an enabling legal framework for India. rate of 6.4 percent.
The states of India have the prerogative to accept it and implement it, or they
can decide to not implement it if they so choose. Actual implementation of policy
will be within the parameters of state laws and regulations.
2010- Market Size
USD 425Billion
The opening of retail industry to global competition is expected to spur a retail rush to Expected in 2014-
India. It has the potential to transform not only the retailing landscape but also the
Market Size USD
nation's ailing infrastructure.
600Billion
For more info on Business setup visit www.startbizindia.in
P a g e | 6 For Business setup queries email at
neha@indiacp.com or call at 011 40622239

7.
Retail Industry In India
GREEN LIGHT FOR SINGLE-BRAND RETAIL REFORMS
On January 10, 2012, India approved increased competition and innovation in single-
brand retail.
The reform seeks to attract investments in production and marketing, improve the
availability of goods for the consumer, encourage increased sourcing of goods from
India, and enhance competitiveness of Indian enterprises through access to global
designs, technologies and management practices. In this announcement, India requires
single-brand retailer, with greater than 51% foreign ownership, to source at least 30% of
the value of products from Indian small industries, village and cottage industries,
artisans and craftsmen.
Globally, Single Brand Retail follows a Business Model of 100% ownership and global
majors have been reluctanct to establish their presence in a restrictive policy
environment. The current cap of 51% confers a right to pass all ordinary resolutions,
while enhancing the cap to 100% will confer full ownership and control, “DIPP had
earlier said in a statement.
Business IDEA OF THE Month
Online Entertainment Shop: We would probably be bored off all the
time if we had nothing for entertainment. Don’t you think? Sanity
mainly, people would go crazy in boredom. Entertainment can be
anything like a movie show, a concert, dance show, comedy show etc.
And, people when gets this entertainment means through a mouse
click, they get excited.
Online Entertainment Shop is a great business opportunity that unites
the entertainment industry with the internet. Let’s consider starting an
online entertainment coupon service. The business concept is very
straightforward. First, you need to design a website that is indexed into
various entertainment services and products such as musical concerts,
plays, movies, etc. in different parts of India. The next step is to
approach companies and businesses within the entertainment industry
to advertise discounts that apply to their specific products and services
on the website. Visitors to the entertainment coupon website would be
only a few clicks away from locating and printing a discount coupon for
the entertainment event or product they were seeking. The business
would gain revenue by charging the entertainment companies a
monthly fee to advertise on the site and post their discount coupons.
And, the start up costs is also not so high. You can start the Online
entertainment business by investing Rs. 50,000 to Rs. 1, 00,000
For more info on Business setup visit www.startbizindia.in
P a g e | 7 For Business setup queries email at
neha@indiacp.com or call at 011 40622239

8.
StartBizIndia Discussion Platform
 Can the branch office of a foreign company purchase immovable
property in India?
A foreign company which has established a Branch Office or other place of
business in India, in accordance with the Foreign Exchange Management
(Establishment in India of Branch or Office or other Place of Business)
Regulations, 2000, can acquire any immovable property in India, which is
necessary for or incidental to carrying on such activity. The payment for
acquiring such a property should be made by way of foreign inward remittance
through the proper banking channels. A declaration in form IPI should be filed
with the Reserve Bank within ninety days from the date of acquiring the
property. Such a property can also be mortgaged with an Authorised Dealer as
a security for the purpose of borrowings. On winding up of the business, the
sale proceeds of such property can be repatriated only with the prior approval
of the Reserve Bank. Further, acquisition of immovable property by entities
incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran,
Nepal and Bhutan and who have set up Branch Offices in India and would
require prior approval of the Reserve Bank.
 Can NRI/ PIO rent out the residential/ commercial property
purchased out of foreign exchange/ rupee funds?
Yes, NRI/PIO can rent out the property without the approval of the Reserve
Bank. The rent received can be credited to NRO / NRE account or remitted
abroad. Powers have been delegated to the Authorised Dealers to allow
repatriation of current income like rent, dividend, pension, interest, etc. of
NRIs/PIO who do not maintain an NRO account in India based on an
appropriate certification by a Chartered Accountant, certifying that the amount
proposed to be remitted is eligible for remittance and that applicable taxes have
been paid/provided for.
For more info on Business setup visit www.startbizindia.in
P a g e | 8 For Business setup queries email at
neha@indiacp.com or call at 011 40622239

9.
Upcoming Business Summit
 GIC CONCLAVE 2012
NASSCOM brings to you the second edition of GIC Conclave 2012, scheduled to be
held in March 2012 in India. The event is themed around Co-creating Value, the two
day conclave would be the ideal platform to share the global best practices, address
the challenges faced by the segment, highlight the success stories and discuss new
business models and strategies. GIC Conclave is a unique platform, which facilitates
focus on segment specific issues. Given the non-compete nature of the industry, the
event would conduct a lot of interactive discussions, which would help share the best
practices.
th st
Date: 20 – 21 March 2012
Venue: Hotel Le Méridien, New Delhi
National
 GIC Conclave 2012
 Doing Business with India Conference – Opportunities in Investing, Trade,
and Outsourcing with India
India Business Conference offers opportunities in investing and doing business with
India in various sectors including Opportunities in Real Estate, Investment, Trade,
Outsourcing, IPO, KPO, IT, Software, Call Centers, Infrastructure, Inter National
Telecommunication, Power Sector & other sectors. It covers Legal, Financial and
Tax aspects of Doing Business with India. Great Opportunity to Network with  Doing Business with
corporate and governmental leaders India Conference 2012
th
Date: 29 May 2012  Global Entrepreneur
Venue: Chicago, Illinois, USA Congress
 Global Entrepreneur Congress
March 9th -15th the Global Entrepreneur Congress 2012 will come to Liverpool,
England providing festival for business people. Entrepreneurs will experience an
inspiring journey through sessions of speeches. And, Speakers included in this
credible line up are Sir Richard Branson, Martha Lane Fox, Sir Terry Leahy, Lord
Heseltine, and many more….
For more info on Business setup visit www.startbizindia.in
P a g e | 9 For Business setup queries email at
neha@indiacp.com or call at 011 40622239

10.
Contact Us
Visit us at
Neha Seth
neha@indiacp.com
D: +91.11.40622239
A Venture of
D‐ 28, South Extn. Part I New Delhi – 110049
Shipra Paul
T: 40622200 F: 91.40622201
shipra@indiacp.com E: info@startbizindia.com
D: +91.11.40622246
Disclaimer:
This paper is a copyright of Corporate Professionals (India) Private Limited. The entire content of this paper have been
developed for the new startups. The author and the Company expressly disclaim all and any liability to any person who has read
this paper, or otherwise, in respect of anything, and of consequences of anything done, or omitted to be done by any such
person in reliance upon the contents of this paper.
For more info on Business setup visit www.startbizindia.in
P a g e | 10 For Business setup queries email at
neha@indiacp.com or call at 011 40622239