1. Changing Retail Landscape in India

2. Indian Retail – Buoyed by high GDP growth Projections of 8% sustainable real GDP growth rate till 2020 promise high growth potential for Indian Retail… Real Growth Rate Source :Central Statistical Organization (CS0)

3. India Experiencing Rapid Economic Growth 9.4% growth rate makes India the second fastest growing economy in the world GDP (US$ bn) Real Growth Rate

4. Led by Growth in Services Sector % Increase in growth over the previous year Services sector adding to GDP in a significant manner

5. Driven from Consumption Throughout the 1.1 Billion Population 5-7 million Super Rich 70 – 80 million Afford Cars, Private Healthcare & Foreign travel 250 - 300 million Afford goods like Refrigerators , Scooters & Colour TVs 600-700 million ( Generally Rural ) Afford simple industrial products e.g. bicycles , radios , textiles Poverty Line = income less than $ 1/day Source: McKinsey, 60 % of India’s population are under 24 years

6. With High Private Consumption GDP US$ 935 billion Private Consumption US$ 580 Billion (62%) Public Spending and Capital Formation US$ 355 Billion (38%) Retail US$ 342 Billion (59%) Non Retail US$ 238 Billion (41%) Urban (5,100 towns) US$ 154 Billion (45%) Rural (6,27,000 villages) US$ 188 Billion (55%) Modern retail – US$ 12 billion 8% of urban retail spends Modern retail Negligible Food Apparel Beverages Footwear Consumer durables Appliances Stationery Kitchen utensils Furniture Furnishings Sports goods Health & Beauty Personal Care Jewellery Timing Transport Communication Recreation Cultural Services Education Rent Utilities Other Services Source: Central Statistical Organization (CS0) and Technopak Analysis Conversion rate: 1 US$ = 40.86 Rs.

7. About US $530 Billion Retail Market by 2012 GDP* US$ 1,450 billion Private Consumption US$ 870 Billion (60%) Public Spending and Capital Formation US$ 580 Billion (40%) Retail US$ 530 Billion (61%) Non Retail US$ 340 Billion (39%) Urban US$ 252 Billion (47.5%) Rural US$ 278 Billion (52.5%) Modern retail – US$ 78 billion 31% of urban retail spends Modern retail – US$ 9 billion 3% of rural retail spends Source: Technopak Analysis *All figures are in nominal terms after taking into account inflation

9. .. but Rapid Transformation is Anticipated And may reach a share of 25% by 2017

10. Weekly Markets Village Fairs Melas Convenience Stores Mom and Pop/Kiranas PDS Outlets Khadi Stores Cooperatives Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls Traditional/Pervasive Reach Government Supported Historic/Rural Reach Modern Formats/ International Evolution of Indian retail Source of Entertainment Neighborhood Stores/Convenience Availability/ Low Costs / Distribution Shopping Experience/Efficiency

11. Adaptation to Local Market – Road for Success Price, concern and typical Indian features are some examples Source: McKinsey Quaterly, winning the Indian consumer, 2005 Chicken hamburger to reach segments that do not eat beef McDonalds Maharaja Mac Nokia 1100 Anti dust keypad for dirty roads, anti slip grip for the heat and flash-light in case of electricity shortage Indian menus with singe touch Samsung microwaves Memory backup to compensate for frequent power shortage Samsung laundry machine 10 milli lt. sachet for less than 5 cents increased the shampoo buying population dramatically Head & Shoulders

13. Recent Trends …..

16. Global Heavyweights in Indian Retailing Convenience and Supermarket Food & grocery, electronics & appliances, clothing & footwear, furniture & furnishing, household articles. Birla Multi format and Multi Category Food & grocery, electronics & appliances, clothing & footwear, furniture & furnishing, household articles. Reliance Multi brand retail chain Sourcing agreement for Consumer durables and Foods under brand name CROMA Tata-Woolworths Cash and carry Global Sourcing of Office equipments across various businesses Staples Inc – Pantaloon Retail Multi Channel propositions Franchising the Argos concept under the terms of the arrangement, Argos will be providing its brand, catalogue and multi-channel expertise and IT support Home Retail Group plc - Shopper's Stop Ltd and Hypercity Retail India Private Ltd Hypermarkets Food and groceries, FMCG, apparel and electronics Carrefour-Landmark Hypermarkets, Supermarkets and Convenience Food & grocery, electronics & appliances, clothing & footwear, furniture & furnishing, household articles. Bharti-Walmart (with $2.5 Billion investment by Bharti) Retail Formats Product Range Joint Ventures

22. Thank You